Credit unions in Utah and Massachusetts announced merger agreements that are expected to be completed in the first quarter of next year.
The $74.8 million Heath Care Credit Union in Salt Lake City, Utah will merge into the $1.1 billion Goldenwest Credit Union in Ogden, Utah. In Massachusetts, the $47.3 million Hingham Federal Credit Union in Hingham agreed to consolidate with the $657 million Liberty Bay Credit Union in Braintree.
Though Health Care posted a 12.95% net worth at the end of the second quarter, higher than the peer average of 11.42%, its ROAA was -0.03% below the peer average of 0.43%, according to NCUA financial performance reports.
Hingham recorded a net worth of 7.58% at the end of the second quarter, lower than the peer average of 12.56%, while its ROAA was 0.14%, lower than the peer average of 0.30%, according to NCUA financial performance reports.
Goldenwest President/CEO Kerry H. Whalen said the merger will enable the credit union to expand its branch network in Salt Lake County where Health Care operates eight branches.
Goldenwest manages three branches in Salt Lake County with a fourth branch under construction, giving Goldenwest 12 locations.
“The merger complements our long-term growth strategy to better serve our members who live and work throughout the state of Utah,” Whalen said.
Health Care members are expected to vote on the proposed merger in the coming weeks. The consolidation also needs to be approved by state and federal regulators.
Health Care was chartered in 1950 and serves 7,654 members.
Liberty Bay President/CEO Ed Lopes also said the merger with Hingham creates a “perfect extension” of Liberty Bay's branch network. Hingham operates two branches that serve 3,666 members.
“As we embark on our 100th year (in 2017), we are taking many exciting steps to grow the credit union's community presence,” Lopes said. “We will also strengthen the Liberty Bay board with the presence of three business savvy community leaders (Hingham board members) who appreciate the Hingham Federal Credit Union legacy.”
The proposed merger must be approved by members of both credit unions and federal and state agencies.
Hingham was chartered in 1957.
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