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Redwood CU Cal State Central CU intend to merge
SANTA ROSA, Calif. (2/23/11)--Redwood CU (RCU) and Cal State Central CU (CSCCU), both located in Santa Rosa, Calif., announced Friday they intend to merge, with RCU becoming the surviving organization. The boards of both credit unions have approved the merger, the credit unions said in a joint press release. Approval from the National Credit Union Administration and the California Department of Financial Institutions is pending. If approved by regulators, the merger would legally take effect April 1, with actual transfer of accounts on June 1. With the combined credit union, RCU would serve nearly 200,000 members in the North Bay and San Francisco, with assets exceeding $1.8 billion. "CSCCU has served the financial needs of state employees and our community for nearly 75 years," said Jim Larson, CSCCU's CEO. "In this environment, it's been challenge to achieve the financial position and growth needed to provide the products, services and locations our members want and need. Our partnership with RCU will allow us to fulfill our mission and provided the added benefits our members deserve," he added. Brett Martinez, RCU's president/CEO, noted that "Our industry's philosophy is people helping people, and this joining exemplifies that concept." Cal State Central had $13.5 million in loan losses during the past five years, and its net worth ratio dropped to 3.65% in December 2010, down from 8.01% in 2006 (Press Democrat Feb. 19). A well-capitalized credit union has a 7% net worth ration, according to regulatory standards. CSCCU has nearly 16,500 members served by four North Bay branches and locations in Sonoma, Glen Ellen and Rohnert Park. RCU has about $1.7 billion in assets and 151,000 members in 2010, served by 15 branches. It said most CSCCU employees will be offered employment with RCU.


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