Community First, Mendo Lake credit unions to merge

Two North Coast credit unions, Community First and Mendo Lake, announced Tuesday their agreement to merge the two nonprofit institutions, bringing together 10 branches and ?$423 million in assets.

If approved by regulators, the combined credit union would take the Community First name and be based in Santa Rosa. Officials characterized the potential merger as a chance for the two credit unions to join forces and provide better service to their members.

“Larger size means we can make a bigger difference,” said Mendo Lake CEO Richard Cooper, who plans to retire in January after 41 years in the industry.

For his members, Cooper said, the merger would mean access to improved technology in mobile banking and “great new leadership” from Community First CEO Todd Sheffield, who would lead the combined credit union.

Community First members, meanwhile, would come under the Ukiah-based Mendo Lake charter, which places a focus on serving low- and moderate-income residents and communities. Under that charter, the northern credit union is able to provide first-time home buyers with grants of up to $15,000 through the Federal Home Loan Bank.

The combined institution will “be big enough to take advantage of the latest electronic conveniences for members, but small enough to maintain the personal service our members appreciate,” Sheffield said in a statement.

The new Community First would remain far smaller than Santa Rosa-based Redwood Credit Union, which serves more than 260,000 members in eight counties and has more than $3 billion in assets.

Mendo Lake has more than 19,000 members and four branches in Lake and Mendocino counties. Community First serves nearly 8,600 members with six branches in Sonoma and Napa counties.

Cooper’s pending retirement provided the impetus to explore a merger, the two sides said.

The merged credit unions would retain all branches and keep a combined staff of 132, Cooper said.

The merger requires the approval of the California Department of Business Oversight, said David Williams, a Community First vice president. As well, Community First members must approve the adoption of the Mendo Lake charter.

With those approvals, the merger could take place in the first quarter of 2017.

You can reach Staff Writer Robert Digitale at 707-521-5285 or robert.digitale@pressdemocrat.com. On Twitter @rdigit