Having won NCUA approval, the $1.7 billion Chevron Federal Credit Union of Oakland, Calif., said it is merging with the $175 million Spectrum FCU of San Francisco in a deal set for final completion this September following a March 28 member vote.
Spectrum, which nationally serves employees of the Bechtel Corp., the worldwide construction firm, with capital impairment constraints, 5% net worth and a small 2011 loss, industry sources noted.
"For us, this merger is a winning combination since both credit unions are alike in serving a large employee work force and a strong professional base," said Jim Mooney, president/CEO of Chevron.
Talks between the two CUs have been ongoing for nearly a year and came to fruition last October, said Mooney.
Once merged, the two CUs would have a membership of 87,000.
The SEG-based Chevron, which serves employees of the oil firm, has 14 branches in California, Texas, Louisiana and Mississippi.
Spectrum, also a multistate operation, has four branches in San Francisco, Houston and Frederick, Md.
Mooney said his own CU has remained healthy despite a small loss in 2011.
"We did absorb that $3.5 million assessment last year," said Mooney, noting that earnings so far in 2012 are positive. "We're doing just fine"
He said there are no plans to scout further merger prospects in California. It did merge two $5 million CUs in 2011, Stewart FCU and Star Energy CU.
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