Why is MCFCU recommending a merger with Foothill Credit Union?
The increasing regulatory burdens smaller credit unions face have resulted in significant increases to our expenses. The Board of Directors conducted a search for a viable merger partner to take advantage of economies of scale. We felt that Foothill Federal Credit Union was the best merger partner for our membership.
This partnership opportunity will combine the resources of the two organizations, so we can offer you greater value and better serve our members and community. Our combined organization will expand the portfolio of financial services we currently offer you and give you greater convenience through more branches, as well as a full range of remote services. It will also provide added resources to offer better member service, provide competitive rates, develop new products and services, and explore new technologies for our members. This merger will put us in an excellent position to meet future regulatory and economic challenges facing the financial industry.
Who is Foothill Credit Union?
Foothill Credit Union (www.foothillcu.org) has more than $725 million in assets and is a full-service credit union serving more than 30,000 members. With more than $83 million in regulatory net worth, Foothill CU has a five-star superior financial strength rating from Bauer Financial, an independent company that has been rating banks and credit unions nationwide since 1983. Foothill CU has a strong 65-year history of providing exceptional banking products backed by exceptional service to its members. This, coupled with its presence within the San Gabriel Valley, makes Foothill CU a natural fit for us.
Will the partnership increase the convenience for conducting financial transactions and will it provide a wider range of products?
We are committed to meeting our members’ needs and providing the products and services that benefit you. This merger is designed to bring you greater value from your credit union membership in every area.
- In addition to their Arcadia location, you’ll immediately have additional branches in Covina and Glendora.
- The partnership will provide you with a wider range of products and services, such as:
- Three checking account options
- Debit cards with the MasterCard logo and contactless capabilities
- Free online and mobile banking, with bill pay and mobile deposit
- Free electronic statements
- Extended weekday phone hours
- Saturday phone hours
- Saturday branch hours at the Glendora and Arcadia locations
- Investment Services, Auto Buying Services, Debt Management Services
- Full range of mortgage products, including an array of first mortgage options and HELOC’s
- Full range of consumer loan products that include new and used auto loans, RV’s, boats and personal watercraft, motorcycle, personal loans, and more
- Platinum Credit Card and Rewards Credit Card
- Greater access to current and emerging technologies
- And much more
Is Foothill Credit Union financially sound?
Yes, Foothill CU is healthy and financially sound with a capital ratio over 11%. Under National Credit Union Administration (NCUA), financial institutions must have a capital ratio of 7% or better to be considered well capitalized. In addition, Foothill CU has avoided high-risk activities, such as subprime mortgage lending.
Is my money safe?
Yes, your accounts remain safe, sound, and insured. Your deposits will continue to be federally insured through the National Credit Union Share Insurance Fund (NCUSIF), a U.S. Government Agency, to at least $250,000 for regular deposits, and at least $250,000 for IRAs.
Do both credit unions support this partnership?
Yes! Both boards and management teams are very excited about this merger opportunity and the benefits it brings to our members and community.
Why partner now?
It would take MCFCU many years to grow where we could provide you with the added value that partnering with Foothill CU would immediately be able to offer you. Additionally, industry data clearly shows that larger credit unions typically offer more benefits to members over the short and long term.
What will the name of the new organization be?
The name of the combined organization will be Foothill Credit Union.
Who will be the CEO of new organization?
Foothill Credit Union President/CEO Mike Terzian will lead the new organization.
Will the MCFCU branch remain open?
The current MCFCU branch will remain open to Monrovia city employee members for the foreseeable future, based on service needs. Foothill Credit Union has a branch and headquarters located nearby at 1 E. Foothill Blvd. in Arcadia, as well as several COOP ATMs you may use, fee-free, including the 7-Eleven at 400 W. Foothill.
How will my MCFCU account(s) be affected?
We will work hard to ensure a seamless integration of your accounts so you can conduct business as you always have. Once the merger is approved, you will be receiving more specific information on this process.
Will the merger affect the membership eligibility of my co-workers or neighbors?
No. Upon completion of the merger, the combined credit union will continue to serve the Monrovia city employees and all of the organizations and companies we serve today. It will also provide credit union membership opportunities to new members that we have not been able to serve in the past.
Will this merger affect MCFCU’s relationship with and ability to serve Monrovia city employees?
No. This merger will give us the resources to expand our involvement. The new credit union will remain committed to serving the city employees of Monrovia and our members, and will continue to support local events and activities.
Is Foothill Credit Union committed to our community and our members?
Yes. Foothill believes in building strong relationships with all of the employee groups it serves. Foothill is heavily involved within the communities it serves and believes in giving back to its members and communities. For example, Foothill has been a sponsor of the Monrovia Reads program for the past several years, volunteering to read at Monrovia Schools and supporting the mobile library bus. Foothill has also served the Monrovia Unified School District, offering membership to educators in Monrovia and 13 other districts in the San Gabriel Valley.
Can I do business in a Foothill Credit Union branch now?
Not yet. Once the merger is completed, you will have full access to all of Foothill CU branches and phone center. We are targeting August 1, 2023, to be the official merger date. We will send you another information packet when we get closer to that target date.
When will the partnership be completed? What happens next?
The Boards of Directors of both credit unions have approved the merger. Members will be asked to vote on the merger. A “yes” vote will mean that you agree MCFCU should merge into Foothill Credit Union to provide more value to members. We will have the process completed by August 1st and will keep you updated on our progress in the coming months.
