Solano First to merge with Bakersfield-based credit union
(Image via Google Street Maps, Graphic by Solano NewsNet)
A Fairfield-based credit union with over 10,000 members in Solano County is merging its operations with a much-larger, Central Valley-based credit union.
In an announcement on Monday, executives at Solano First Federal Credit Union said it had agreed to a merger with Valley Strong Credit Union, a financial firm based in Bakersfield that serves the San Joaquin Valley.
The merger is subject to regulatory approval and other hurdles before it can be completed.
Executives at both companies said the merger would benefit members of each brand in that it would provide more banking opportunities and additional locations.
Solano First Federal Credit Union currently operates 3 branches in the Solano County area, while Valley Strong Credit Union operates nearly two dozen, mostly in Bakersfield. The closest Valley Strong Credit Union branch to Solano County is in Visalia, which is over 3 hours away.
Executives say the merger should be consummated on paper by the middle of the year, at which point Valley Strong’s executive leadership and board would replace those at Solano First. The Solano First Federal Credit Union name will also be retired, and the financial firm will switch over to Valley Strong’s operating system, a process that is expected to be finalized by the end of the year.
It wasn’t clear if the takeover would lead to lost jobs at Solano First Federal Credit Union down the line. Neither company promised to retain jobs at Solano First, though Valley Strong executives said the company had a “desire to retain existing staff, and there will be a concerted commitment and effort to do just that.”
No branches in Solano County will close as a result of the merger, the companies said.
As the deal works its way through various approval processes, members at each financial institution won’t notice changes right away. If the merger is approved, interest rates on fixed-rate loans issued by Solano First will remain the same “until the end of their existing term,” the company affirmed.
Other products will have their rates set by Valley Strong, which the company says will lead to “
Interest rates on fixed-rate loans would remain the same “until the end of their existing terms,” the company affirmed, while other products will be re-worked to provide “provide…better, more competitive rates” based on market conditions.
Deposit accounts will continue to be insured by the National Credit Union Administration (NCUA) up to $250,000 per account. Similar insurance will continue to be offered for Individual Retirement Accounts (IRAs) and trust accounts.
Following the merger, Valley Strong Credit Union will manage more than $2.2 billion in assets, the companies said. That will include Solano First Federal Credit Union’s $175 million in assets.
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