SLFCU and Kirtland Federal Credit Union Announce Merger Plans
David Seely, President/CEO of KFCU, Michael Chase, KFCU Board Chair, Tazmin Ralph, SLFCU Board Chair and Robert Chavez, President/CEO of SLFCU sign the merger agreement.
Sandia Laboratory Federal Credit Union and Kirtland Federal Credit Union have announced that they are seeking a merger of the two institutions. Both boards of directors have approved a resolution to merge and we will now begin a more in-depth process to evaluate the possibility of combining our two organizations. Kirtland is a $760 million credit union with 42,000 members, 130 employees and 4 branches all located here in Albuquerque.
Here are a few answers to questions you may have.
WHY ARE WE CONSIDERING THIS MERGER?
- Both institutions are financially strong and well managed. Although slightly different, both of our organizations serve members that have a connection related to national defense, with Kirtland Air Force Base and Sandia National Laboratories. Kirtland’s values are consistent with ours, their focus on service is consistent with ours, and we’re both competitively priced.
- When and if the merger is consummated, members of both institutions will benefit from the size and scale of an even larger organization and our ability to offer more attractive products and services. Based on year-end 2015 numbers, our combined organization at over $3 billion will be about the 43rd largest credit union in the United States.
WHEN WILL IT HAPPEN?
- The in-depth due diligence process to evaluate the possibility of combining our two organizations will probably take about six months. Once the due diligence process is complete, the possible merger will require regulatory approval by the NCUA as well as the approval of Kirtland’s membership. Sandia Laboratory Federal Credit Union members are not required to vote since SLFCU will be the surviving charter. Even after Kirtland’s members vote to merge, there will be some time before Kirtland’s systems are merged into SLFCU’s.
HOW WILL THIS IMPACT EMPLOYEES OF BOTH CREDIT UNIONS?
- All employees of both credit unions will continue to be employed – there will be no layoffs as the result of this merger.
Until the due diligence is complete and the regulatory approval and Kirtland membership vote are obtained, which is expected to be a full year from now, it will be business as usual. Our employees are aware of how important it is that we continue to provide the high level of service that you, our members, have come to expect.
If you have questions regarding the planned merger, please feel free to contact us at 505.293.0500, 800.947.5328, or via email at ebranch@slfcu.org.
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