Phoenix credit unions plotting merger of equals
Canyon State Credit Union and Deer Valley Credit Union, both based in Phoenix, Ariz., plan to join forces in what organizers called a “collaborative merger” that represents “a joining of equal credit unions.”
The proposed transaction remains subject to approvals by members of both credit unions and regulatory bodies. The combined entity will have more than $440 million in assets and 10 branches. Officials at both CUs hope to finalize the deal by late summer, and no layoffs or branch closures are expected.
“Our goal is to bring both memberships increased benefits with expanded services, products and locations,” Deer Valley’s CEO Robb Scott said in a statement.
Scott is expected to serve as CEO of the merged institution, which will determine a new name once the deal is approved.
“Our industry is in a constant state of flux and with an increase in fintech competition we recognize we’re better positioned to serve our members by combining resources,” said Jane Dobbs, CEO of Canyon State.
Canyon State, with about $193 million in assets, posted net income of about $415,000 in 2018, compared to a figure of $4,550 for the prior year. (The 2018 figure included total non-interest income of about $4.1 million, up from $3.3 million in 2017.)
Deer Valley, with $248 million in assets, recorded net income of about $1.19 million in 2018, a 55 percent increase over the previous year.