July 12, 2012
The boards of directors of Prevail Credit Union and Harborstone Credit Union have signed agreements to merge, putting into motion the eventual consolidation of two prominent Washington credit unions.
"By joining forces, we will create an even stronger credit union, one that is well-positioned to leverage its size and buying power to benefit members,” said Harborstone President and CEO Phil Jones, who will serve as CEO of the merged credit union.
The merger of Harborstone, based just south of Tacoma in Lakewood, Wash., and the Seattle-based Prevail essentially extends each credit union’s reach throughout the entire Puget Sound region. Both are state chartered community-based credit unions, with, according to Jones, complementary core competencies. The merger will result in a 67,000-member institution, adding 17,000 Prevail members to a Harborstone ledger that currently boasts 52,000.
“Together, we can give our members access to expanded services, better rates and more branch locations,” said Tom Graves, president and CEO of Prevail. “And our organizations share an amazingly similar culture and values, which helps make this merger a natural.”
Graves will serve as executive vice president following the merger.
Both credit unions notified members by mail this week. Prevail’s letter to members promised an “overriding principle of providing the best financial resource for our members,” as well as greater services, increased access, and the benefits that come along with greater numbers.
“Both credit unions are financially strong and healthy now,” the letter stated, “and joining our organizations gives members even more stability and protection from future economic downturns.”
Members will receive more information through a number of channels in the coming weeks, and town hall meetings are planned along with regular updates on both credit union websites.
Merger documents will be filed with regulators in July, with initial regulatory approval expected by early September. Prevail members will then be asked to vote on the merger in early October.
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