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Two California Credit Unions Merge, CU Group Says

credit unions, merger, NCUA
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Two months after being put into custody, the Postal Federal Credit Union of Pomona in Pomona, California, merged with another credit union (CU).

The National Credit Union Administration (NCUA) announced the merger Monday (January 3), saying that Pomona CU has merged with the Anaheim-based Southern California Credit Union.

According to the statement, CU members should see no disruption to their services, with deposits protected by the National Credit Union Participation Insurance Fund, which supports individual accounts up to $250,000.

NCUA placed Pomona CU into regency on November 5 last year and appointed itself as trustee.

“The agency has worked to address issues affecting the integrity and safety of the credit union,” the NCUA wrote in the statement. “As a custodian, the NCUA determined that incorporating the Pomona Federal Postal Credit Union into the Southern California Credit Union was in the best interest of its members.”

Prior to the merger, Pomona CU—founded in 1964, primarily to serve postal workers in that part of California—had just over $4 million in assets and 717 members.

Meanwhile, the Southern California Credit Union had $2.22 billion in assets and 129,617 members. The merger comes at a time of significant growth for credit unions, PYMNTS recently reported.

Read more: Credit unions combine in-person services with 24/7 digital support to win small business customers

Global membership in CUs grew 29% in 2020, according to a study by the World Council of Credit Unions, with CUs now numbering more than 375 million members in 118 countries.

This growth is attributed to COVID-led digital initiatives and financial assistance to attract new members, as well as ongoing membership retention efforts.

In the United States, more than 4.4 million people joined credit unions between August 2020 and August 2021, according to the National Credit Union Association (KUNA).

CUNA says that number exceeds 4.1 million new members from the period between 2019 and 2020, bringing the total national CU members to 130 million.

This growth may be due in part to higher bank fees, which major banks raised in response to an amendment to the Dodd-Frank Act that limited the fees banks could charge merchants to process debit card purchases.

Related: How credit unions can identify and eliminate fraud risks

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