mchen@heraldsun.com; 419-6636
DURHAM -- Self-Help Credit Union is kicking off 2010 with nearly $90 million more in assets and 20,900 additional members after acquiring three failing credit unions in North Carolina and California at the start of the year.
The Durham-based credit union acquired Choice Federal Credit Union of Greensboro on Jan. 1, adding $47 million in assets and 9,000 members. Self-Help's federal entity also acquired two other financial institutions in California this month: El Futuro Credit Union on Jan. 1, with $8 million in assets and 3,500 members, and Kern Central Credit Union on Friday, adding $34.9 million in assets and 8,400 members.
All told, Self-Help now has about $560 million in assets and 53,400 members.
According to David Beck, spokesman for Self-Help, the mergers have been a positive for Self-Help and allow the added credit unions to offer more lending products, such as mortgage loans.
"All the mergers to date have been very good in terms of dovetailing the strength of the credit unions on the ground," he said. "They provide us an ability to expand our mission and serve more people."
The liquidation/mergers in California were approved by the National Credit Union Administration, making Self-Help now the second largest community development credit union in California.
Kern Central will do business as Community Trust Credit Union, a division of Self-Help Federal Credit Union, which already includes branches in Porterville, Modesto, Riverbank, East Palo Alto and East San Jose.
"Within this challenging economic environment, the need to preserve access to responsible financial services for underserved communities is critical," said Steve Zuckerman, managing director of Self-Help's California operations.
Kern Central was the fourth merger by Self-Help in California since 2008, when it received the federal charter to form SHFCU and had an initial capitalization of $5 million. Prior to that, Self-Help's policy arm, Center for Responsible Lending, had offices in California.
SHFCU merged with People's Community Partnership Federal Credit Union in West Oakland in fall 2008 and with Community Trust Credit Union in June 2009.
"It's making for a very busy time in Durham and in California, but it's an opportunity to make sure that low-income families are maintained by their credit union," Beck said. "The economy is so struggling in California that their members are the hardest hit when the economy goes south."
Self-Help now has nine full retail credit union branches and four lending branches in North Carolina, and 10 offices in California. The credit union does not operate in any other state.
