A rare merger of two billion dollar credit unions in California became effective today.
The $1.6 billion California Credit Union in Glendale and the $1.2 billion North Island Financial Credit Union in San Diego announced Tuesday that their consolidation has received regulatory approval as well as approval by a majority vote of the North Island membership. The credit union did not release the final results of the membership vote.
The merger makes California CU the 13th largest cooperative in the Golden State with $2.8 billion in assets, more than 165,000 members and 24 branches across Los Angeles and San Diego counties.
North Island President/CEO Steve O’Connell is the CEO of the combined organization and executive management from both credit unions will make up the senior team of the new organization, according to a prepared statement.
California CU President/CEO Ron McDaniel will retire this year.
In addition, all California CU and North Island board members will serve on the combined credit union’s board of directors and supervisory committee.
The IT system’s integration is planned for mid-May, 2017, according to the prepared statement.
Credit union operations in San Diego County will retain the North Island name, operating as a division of California CU.
“There is no question that the economy of scale advantages and expertise of our combined organization will enable us to bring much more long-term value to members,” Walton Greene, California CU board chair, said in a prepared statement. “The product and service expertise of our credit unions complement each other well, and we look forward to expanding our full suite of products and services tailored to the education market to the San Diego community.”
Greene also said the timing made sense as Ron McDaniel had scheduled his retirement for this year.
“We also want to express our appreciation to Ron, who has done an outstanding job as CEO for the past 13 years and played an instrumental role in our continued growth and positive performance,” Green said.
“Joining forces with California Credit Union will immediately expand our geographic presence and allow both credit unions to realize the significant efficiencies of a larger organization,” Gene Pellerin, board chair of North Island, said in a prepared statement. “Together, we will have the resources to make the right long-term infrastructure and technology investments, deliver more for our members, and become vastly more competitive with significant growth opportunities.”
