University CU Expands California Campus

University Credit Union of Los Angeles extended its reach 400 miles to the San Francisco area and boosted its assets beyond $1 billion as it completed its acquisition of Chabot Federal Credit Union this month.

Members of Chabot ($74 million in assets, 1,653 members as of June 30) voted to approve the merger in September and it became effective Oct. 13. Its location in Dublin, Calif., is 35 miles east of San Francisco.

David Tuyo, president/CEO of UCU, said the merger announced in August enables both credit unions to better serve their members by improving access for educational communities and strengthening their technological ability to provide financial services.

“This merger is about bringing us together and finding pathways to better serve all of our members as well as the higher education communities we serve. Greater participation in the financial cooperative allows us to increase the amount we are able to give back and invest in these communities.” Tuyo said.

Chabot staff and the Dublin location will be retained through the merger. Chabot will now operate as UCU with a full systems conversion expected to be completed by March 31, 2022.

“By joining together, our members will have access to a wider variety of products and services at competitive rates,” Chabot President/CEO Christine Petro said. “It was important to us that we stay focused on serving the higher education community and partnering with UCU makes this possible.”

Had the merger been completed June 30, it would have had $994 million in combined assets and 45,784 members. After the merger it had more than $1 billion in assets and 46,680 members.

The credit union is one of dozens that have been exceeding $1 billion in assets in the past year through combinations of organic growth and mergers. NCUA data showed 39 credit unions surpassed $1 billion in assets, 38 surpassed $2 billion, 15 surpassed $4 billion and six surpassed $10 billion in the 12 months ending June 30.

“It’s good to be increasing in size,” Tuyo said. “It gives us economies of scale and operational efficiencies that we wouldn’t have otherwise.”

He continued, “Higher margins will allow the credit union to acquire technologies to provide faster and better quality service to members, and to invest in staff and training.”

UCU was founded in 1951 on UCLA’s campus and has three locations in the area. Membership is open to all students, employees and employees of any university or school of higher learning in southern California, and any school in the University of California system.

Tuyo said the credit union plans to use the Chabot office as its northern California base, serving not only former Chabot members with ties to Chabot and Las Positas colleges, but also UCU’s pre-existing members with ties to Saint Mary’s College, Santa Clara University and UC Davis.

“The Chabot merger is right in the middle of all our university partners,” Tuyo said.

Chabot was formed in 1962 and was open to employees, students and alumni of Chabot College, Las Positas College, the Chabot Las Positas Community College District, the City of Hayward and several select employers in Dublin.