LAKE COUNTY, Calif. – Two North Coast credit unions – Mendo Lake Credit Union and Community First – have agreed to a merger, which officials said Tuesday will create a stronger institution and expand offerings.
At the same time, all branches, ATMs and employees will stay, according to Mendo Lake Credit Union Chief Executive Officer Richard Cooper.
“It's a big day with big news,” Cooper told Lake County News during a Tuesday interview.
Mendo Lake, founded in 1959, is headquartered in Ukiah. Over the last several years, under Cooper's leadership, it has built a stronger Lake County presence with an expanding menu of offerings to members, and more outreach and advertising in local media, including Lake County News.
Community First, founded in 1961, is headquartered in Santa Rosa, and serves Marin, Mendocino, Napa and Sonoma counties.
“It's a perfect match for the two credit unions,” said Cooper.
“By combining, we make the financial cooperative the perfect size. We’ll be big enough to take advantage of the latest electronic conveniences for members, but small enough to maintain the personal service our members appreciate,” Community First CEO Todd Sheffield said.
Both credit unions were begun by local teachers and later converted to community charters to accommodate all local residents, the institutions reported.
Together, the combined not-for-profit financial cooperative will have assets of $423 million and nearly 48,000 members, and 10 branches across its coverage area, according to the Tuesday announcement.
One of the main changes will be the name. Cooper said the combined credit union will be known as Community First, which he said will have a broader appeal in the diverse areas it serves.
“At Mendo Lake we've put the community first for years, and now it gets to be our name. How cool is that?” Cooper said.
He said the merged credit union will use the Mendo Lake charter, which has advantages in helping low- to moderate-income households.
Cooper said the Mendo Lake charter is very valuable, with community development financial institution status, which he said gives it the latitude to help underserved segments of the community.
“The value is in keeping our charter but in expanding out of the two-county area,” he explained.
The merger also will boost the credit union's ability to do more and bigger lending, said Cooper, explaining that Community First is a much larger real estate lender than Mendo Lake is currently.
At the same time, it will make for a stronger overall institution, said Cooper, explaining that it has gotten harder and harder to be a small institution in today's competitive and regulatory environment.
As an example, he said the chief executive officer's job at Mendo Lake used to include compliance responsibilities related to government regulations. Now, he has two full-time staffers who work on compliance issues and is hiring a third.
Services like home and mobile banking also are very expensive, but become less expensive with more customers, Cooper said.
The biggest plus is the stronger institution that can withstand economic changes, he said. “This is going to make the credit union a good, strong place that will be there” and won't disappear during a crisis.
There is another important reason to seek the merger, as Cooper – after a 41-year career in the financial sector – plans to retire in January.
“The board considered several options, but felt a merger was best for members. As they looked for a local credit union with shared values and complementary services, Community First was clearly an ideal partner,” said Cooper.
Cooper said he and Sheffield have known each other for years. Cooper touted Sheffield's long career in the financial sector and his proven track record of growing institutions, and said Sheffield was the best CEO for the new institution that could have been found.
Sheffield also is a former Lake County resident, having lived in Cobb. “Here we've got somebody who's in the area and knows the neighborhood,” said Cooper.
“I’ve always appreciated Todd’s approach to financial management and his dedication to community service. I can retire with peace of mind knowing Todd will run the combined organization,” Cooper said.
There is no overlap in branches, as the two financial cooperatives provide banking services in separate but contiguous counties. Therefore, officials said all branches, ATMs, employees and managers are needed and will remain in their current locations.
The process still to come, said Cooper, is “cut and dried.”
Community First members must choose to adopt the Mendo Lake charter, so Community First members will vote on the merger, he said.
After the vote, the California Department of Business Oversight and National Credit Union Administration will review the merger and if all goes as planned, the two organizations will become one in early 2017, according to the Tuesday statement.
The two credit unions reported that it is also important to note that they are owned by their members. Unlike a bank merger, where stock and cash are often exchanged, no individuals or outside stockholders will profit from this process.
Sheffield said they are in the process of reviewing service offerings, rates, and fees, and choosing the ones that benefit their members.
“If Community First has better rates for members with savings accounts, we’ll use those rates. If Mendo Lake has lower fees for members, we’ll use that fee structure. We are all really pleased to be working together, because it is clear we will be able to offer our members even better products and services,” Sheffield said.
For an in-depth fact sheet on the proposed merger visit
https://www.mlcu.org/site/assets/files/3762/mlcu_memberssheet_final.pdf .
Email Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it. . Follow her on Twitter, @ERLarson, or Lake County News, @LakeCoNews.
