More expansion is in the works for Spokane Teachers Credit Union, which does business as STCU.
After a deal last fall to
The $4.1 billion-asset STCU said in a press release Wednesday that it expects the merger with $180 million-asset CDFCU to be completed late summer or early fall.
The boards of both institutions have already approved the deal, which still needs approval by the National Credit Union Administration and the Washington State Department of Financial Institutions.
"Our membership will continue to see familiar faces when they visit their favorite branch. In the communities we serve, CDFCU employees are their neighbors and friends," said Colleen Manley, CEO of CDFCU. All employees there are expected to be offered positions with STCU and all five branches will be converted to STCU facilities.
Part of the impetus for the deal was the increasing difficultly for small credit unions such as CDFCU to provide the technology and financial products needed to ensure continued success. While instiutitions of Coulee Dam FCU's size frequently struggle to put new technologies in place, that is less of a barrier for large credit unions.
Some industry observers expect the nation's largest credit unions to look at
Ezra Eckhardt, STCU president and CEO, said meetings between the two institutions revealed that a merger would be a good fit for both sides.
“As we talked with the team at CDFCU, it became apparent that our credit unions are a natural match for a friendly, beneficial merger,” he said.
STCU earned roughly $23.2 million in the first three quarters of 2020, compared with nearly $26 million for the same period in the prior year, according to NCUA call report data.
CDFCU earned roughly $347,000 in the first three quarters of 2020, compared with $504,000 for the same period in the prior year.
