Darigold Federal Credit Union Announces Plans to Merge Into Sound Credit Union
March 21, 2014
March 21, 2014
Darigold Federal Credit Union announced today that it will merge its operations into Sound Credit Union later this year, giving the Tacoma-based financial institution a total of 21 branches throughout Pierce, Thurston and King counties.
If approved, the consolidation would be the 15th merger completed by Sound over the past couple of decades. Darigold, which is based in Shoreline, has $4.9 million in assets and 1,137 members. The much larger Sound, which was founded in 1940 by 51 Pacific Telephone and Telegraph workers who pooled together $106.50, today has nearly $1.1 billion in assets and serves 97,507 members.
“We are excited to pursue this merger opportunity with Sound,” says Darigold President/CEO Donna Subera. “We will now be able to offer more services that, as a small credit union, we simply couldn’t offer before. We weren’t able to provide the technology that young members want. We never got into business lending or first mortgages. But Sound is a full-service credit union, and our members will benefit from that.”
Subera says she expects to have NCUA approval for the merger by April 28. Darigold members would vote sometime this summer, she says, and the merger could be completed by late October. The two credit unions said both boards unanimously approved a merger agreement in late January.
“Our members have been informed of the plan, and the response has been very positive,” says Subera, who plans to stay on through the merger process. Having access to “an extensive branch network and technology such as mobile check deposit will make their banking life easier,” she says.
Denise Reagan, Sound’s executive vice president and COO, says the current business environment makes it “very, very hard” for small credit unions like Darigold to remain competitive. “But we like to think that you can do better things together,” she says.
That’s why Sound has long pursued a combination of mergers and organic growth, Reagan says. “We want to grow smart, remain competitive and still maintain the member service experience.”
Reagan says no jobs will be lost because of the consolidation. Sound currently has around 233 employees, she says.
Rick Brandsma, Sound’s president and CEO, called Darigold a “strong, stable credit union.”
“We are excited for this opportunity,’ Brandsma says, “and look forward to serving the members of Darigold Federal Credit Union.”
Questions about this story? Contact Gary M. Stein: 503.350.2216, firstname.lastname@example.org.
Posted in Federal.