Merger Questions and Answers
Additional information about the proposed merger between Sandia Laboratory Federal Credit Union and Kirtland Federal Credit Union
WHAT WOULD SLFCU GAIN BY MERGING? UPDATE MARCH 29, 2017
Because the proposed merger was introduced by Kirtland Federal Credit Union, our members might be wondering what SLFCU stands to gain from a merged organization.
One of the major benefits to SLFCU is that the merger would allow us to make more commercial loans. Credit union business lending is generally limited to 12.25% of total assets, and SLFCU is nearing that cap. By combining Kirtland FCU’s assets with SLFCU’s, we’ll have the opportunity to originate up to $90 million in additional business loans. More business loans help SLFCU’s bottom line while supporting the local economy. As a locally based business lender, SLFCU meets a need in the Albuquerque and Livermore markets and can make loan decisions faster, keeping small businesses running.
Kirtland FCU’s membership – more heavily weighted toward borrowers – would also complement SLFCU’s membership, which is dominated by savers. A healthy balance of borrowers and savers allows us to use more of our deposits to make loans, which earn more than the deposits we invest. Earnings from this wider margin could be used a number of ways to benefit members, including better rates, lower fees, and investments in technology and other infrastructure.
The Merger Process
The due diligence process – a detailed study of both credit unions’ policies and outstanding contracts, loans and investments, and the organizations’ similarities and differences – has been completed . The merger requires approval of Kirtland FCU’s members and the National Credit Union Association (NCUA), the independent federal agency that oversees federal credit unions.
Even after receiving the approval of both groups, there will be some time before Kirtland FCU’s systems would be merged into SLFCU. If you have any questions or concerns, please email ebranch@slfcu.org or call 800.947.5328 or 505.293.0500.
If you have account-specific questions, please send a secure message via CU@home® Online banking.
UPDATE JANUARY 23, 2017
Progress continues on the proposed merger between Sandia Laboratory Federal Credit Union and Kirtland Federal Credit Union. Both institutions are working through the due diligence process to further understand our differences and similarities. Updates and information about the proposed merger will continue to be published on this page.
UPDATE DECEMBER 20, 2016
As announced previously, Sandia Laboratory Federal Credit Union and Kirtland Federal Credit Union are taking steps to initiate a merger of our credit unions. We have had several meetings with Kirtland’s employees and continue to be very impressed with both their level of expertise and their dedication to member service. As we anticipated, their values appear to be well aligned with SLFCU’s; we are optimistic that this merger will be of great value to the members of both credit unions. In the coming months, both credit unions will continue to perform financial, product, and process analyses in order to ensure that the combined credit union will be a good fit for both organizations.
ANNOUNCEMENT OCTOBER 27, 2016
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 in Albuquerque.
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