GLENDALE, Calif. and SAN DIEGO, Feb. 28, 2017 /PRNewswire/ -- California Credit Union and North Island Credit Union (North Island) announced that their merger has received regulatory approval as well as approval by a majority vote of the North Island membership. The merger will become effective March 1, 2017, with system integration planned for mid-May, 2017.
North Island Chief Executive Officer Steve O'Connell will become CEO of the combined organization on the effective date of the merger, and executive management from both credit unions will make up the senior team of the new organization. California Credit Union CEO Ron McDaniel will retire from the credit union, which had been scheduled for 2017. All current California Credit Union and North Island Board members will serve on the combined credit union's Board of Directors and Supervisory Committee.
The $2.8 billion organization, which will serve 165,000 members with 24 branches across Los Angeles and San Diego counties, will take on the California Credit Union name and charter as the continuing credit union. Credit union operations in San Diego County will retain the North Island name, operating as a division of California Credit Union.
This "merger of equals" partnership combines two independently strong, successful credit unions with similar asset sizes, shared California roots, and complementary branch networks to bring greater value to their collective members, employees and communities. Joining forces expands both credit unions' California footprint, brings measureable economies of scale, and provides long-term growth opportunities. In addition, North Island's community marketing and product expertise is a strong complement to California Credit Union's focus on the education market, providing new growth opportunities in two of the state's largest markets.
"California Credit Union has been actively considering partnerships to strategically expand and diversify to best serve our members and educational community. Our two executive teams have had close working relationships for a number of years, and we both realized that our credit unions were a great cultural, financial, operational and strategic fit. 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. The timing also made sense as Ron McDaniel had scheduled his retirement for this year," said Walton Greene, PsyD, California Credit Union Board Chair. "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. 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."
Gene Pellerin, chair of the Board of North Island Credit Union, commented, "Our Board of Directors and Executive Team are continually looking for new ways to enhance member benefits, better serve the San Diego community, and ensure we continue to thrive well into the future. 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. 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. With our shared Southern California roots, values and a commitment to serve our local communities, we will be able to offer the best possible service, products, pricing and convenience to our collective members. We have great respect for the California Credit Union Board, leadership and staff, and look forward to combining the best of each organization's strengths to grow and bring all our members an extraordinary banking experience."
About California Credit Union
California Credit Union is a federally insured, state chartered credit union founded in 1933 that serves all California public or private school employees, as well as their relatives, members of the student body, and other related organizations. With more than 88,000 members and assets of $1.6 billion, Glendale-based California Credit Union has 13 branches throughout the Los Angeles area. Visit CaliforniaCU.org for more information.
About North Island Credit Union
North Island Credit Union is a member-focused financial services provider celebrating 75 years in San Diego. Originally founded as the Naval Air Station San Diego Federal Credit Union in 1940, North Island now operates under a community charter and offers services to all San Diegans, including military members and their families, as well as all civil service employees and their families, and businesses headquartered in San Diego County. North Island offers a full suite of consumer, business and investment products and services, including comprehensive consumer checking and loan options, personalized financial planning, business banking, and leading-edge online and mobile banking. As a not-for-profit organization, North Island returns earnings to members in the form of lower loan rates, higher interest rates on deposits, and lower fees. North Island Credit Union has $1.3 billion in assets, 11 branches and 75,000 members countywide. More information at northislandcu.com.
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SOURCE North Island Credit Union