An economic downturn in parts of Northern California forced a credit union to find a merger partner.

The $143 million-asset Vocality Community Credit Union in Garberville said the company and the community it serves has been hit with hard economic times of late.

“If you’re a member living in this area you are experiencing the same things as we are: reduced income and growing expenses,” the credit union said in a press release.

To address the long-term sustainability of the credit union and to “help weather these economic hardships,” the credit union announced that it plans to merge with $819 million-asset Community First Credit Union in Santa Rosa.

Vocality Community lost roughly $480,000 in the first three quarters of 2024 after losing $3.2 million in 2023, according to call report data from the National Credit Union Administration.

The merger is expected to be completed next year.

The newly combined organization will operate under the Community First Credit Union charter and name.

Scott Johnson, President and CEO of Community First, will continue as the combined credit union’s chief executive. Pat Neighbors, President and CEO of VCCU, will serve as its chief strategy officer.

“Our shared vision is to provide an exceptional digital banking experience, greater convenience and the innovative products and services our members expect,” Johnson said in the release.

The combined company is projected to serve more than 70,000 members through 12 branches. No layoffs or branch closures are planned, the companies said.

Both companies are certified as Community Development Financial Institutions.

Community First merged with Mendo Lake Credit Union in 2017.

Community First earned roughly $2 million through the third quarter of 2024, a 56% decrease from a year earlier, according to call report data from the NCUA.

The NCUA approved 49 mergers in the third quarter, up from 46 consolidations in the second quarter and 26 mergers in Q1.

“Together, we’re combining decades of expertise and a mutual commitment to delivering the highest standards of service, access and financial support.”

 – Pat Neighbors
CEO
Vocality Community Credit Union