Sonepco, SCE federal credit unions to merge

Sonepco Federal Credit Union of Las Vegas will merge with SCE Federal Credit Union to create a $560 million financial institution that serves 50,000 members in Nevada and California.

The proposed merger still needs to be approved by the National Credit Union Administration and voted on by Sonepco members.

"The current plans to merge with Sonepco will benefit each organization, most notably providing all members with an expanded branch network when they travel between Southern California and Nevada," said Dennis Huber, chief executive officer of Irwindale, Calif.-based SCE Federal Credit Union.

Huber said the merger positions his credit union for "additional growth opportunities" in both states.

"We think the future is bright," he said. "In addition to other opportunities, we have several hundred current members who live in the Las Vegas area who will be very well served by this new partnership."

Members from each credit union's board of directors have approved the merger, which has Sonepco members becoming members of SCE FCU.

Following regulatory approval, Sonepco members will be asked to vote on the merger, he said.

"Joining SCE FCU is a natural progression for us," Sonepco CEO Sue Longson said in a statement. "We share a common history of serving employees at energy companies."

Longson was unavailable for comment Wednesday. Under the terms of the deal, she will remain in Las Vegas and assume a senior management position with the new credit union.

Huber will oversee an expanded SCE FCU that will operate branches in Clark, San Bernardino, San Diego and Los Angeles counties. The new credit union will have nine board members and 150 employees.

"The transaction will occur in phases, allowing time for the local community to get acquainted with us before introducing new signage," Huber said.

The combined credit unions will have a capital ratio of approximately 8.6 percent. NCUA regulators consider 7 percent to be a well-capitalized financial institution.

At the end of the first quarter of 2011, Sonepco's capital ratio was 4.2 percent, including provision for loan loss.

SCE FCU's annual report for 2010 showed earnings of $2.5 million, compared to $259,934 in 2009. The credit union's provision for loan losses also declined last year to $6.5 million, down from $9.6 million in 2009.

Sonepco, which serves NV Energy employees, has more than 5,100 members and assets exceeding $56 million. The credit union has three locations in Las Vegas and Henderson.

Contact reporter Chris Sieroty at csieroty@reviewjournal.com or 702-477-3893.