Two months after being placed under trusteeship, the Pomona Postal Federal Credit Union of Pomona, Calif., Merged with another credit union (CU).
The National Credit Union Administration (NCUA) announced the merger on Monday, January 3, saying Pomona CU had merged with the Anaheim-based Credit Union of Southern California.
According to the statement, CU members are expected to see no disruption in service, with deposits protected by the National Credit Union Share Insurance Fund, which supports individual accounts up to $ 250,000.
The NCUA placed the Pomona CU under trusteeship on November 5 last year and appointed itself curator.
“The agency has worked to resolve issues affecting the safety and soundness of the credit union,” the NCUA wrote in the statement. “As a conservative, the NCUA determined that the merger of the Pomona Postal Federal Credit Union with the Credit Union of Southern California was in the best interests of its members.”
Prior to the merger, the Pomona CU – founded in 1964, primarily to serve postal workers in this part of California – had assets of just over $ 4 million and 717 members.
Meanwhile, the Credit Union of Southern California had assets of $ 2.22 billion and 129,617 members. The merger comes at a time of significant growth for credit unions, as recently reported by PYMNTS.
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According to a study by the World Council of Credit Unions, the number of CU members around the world increased by 29% in 2020, with CUs now having more than 375 million members in 118 countries.
This growth has been attributed to digital initiatives and financial assistance related to COVID which are attracting new members, as well as continued member retention efforts.
In the United States, more than 4.4 million people joined credit unions between August 2020 and August 2021, according to the Credit Union National Association (CUNA).
CUNA reports that this number exceeds 4.1 million new members in the period between 2019 and 2020, bringing the total of CU national members to 130 million.
Part of this growth could be due to higher bank fees, increased by big banks in response to an amendment to the Dodd-Frank Act that limited the fees banks can charge merchants to process debit card purchases. .
Related: How Credit Unions Can Work to Identify and Eliminate Fraud Risks