Delaware, Illinois CUs Among Latest Consolidations
October 11, 2013
MADISON, Wis. (10/15/13)--Eleven new mergers or planned mergers of U.S. credit unions were recently announced, signaling that the trend toward consolidation continues.
Here are the latest mergers.
The members of $18 million asset Seaford (Del.) FCU met Sept. 26 to approve a merger into Del-One FCU, Dover, Del., with $305 million in assets. The challenges of a complex regulatory and compliance environment coupled with Seaford FCU's desire to expand service delivery channels and product and service offerings were the primary reasons for the merger. The effective date of the merger was Oct.1, and system conversions will be completed about Dec. 1.
outhern Illinois Area CU, Swansea, Ill., will merge into Arsenal CU, Arnold, Mo., at the end of the year. Through the merger, Southern Illinois Area CU's 1,900 members will have access to more products and services and the conveniences of a larger branch network while Arsenal's 24,000 members will gain access to another branch, the credit unions said.
Great Lakes CU, with $632 million in assets, in North Chicago, Ill., has merged with $14 million asset Chicagoland Electrical Industry CU in Willow Springs, Ill. Chicagoland Electrical Industry CU will gain the economy of scale a larger financial institution can provide as GLCU offers a variety of financial products and services, some of which were not currently available to CEICU members (Chicago Daily Herald Oct. 8).
The proposed merger of $83 million asset ChevronWest CU, Bountiful, Utah, into $2.2 billion Chevron FCU, Oakland, Calif., was approved by ChevronWest members and will be finalized on Oct. 31, when ChevronWest accounts are moved onto Chevron FCU systems.
Members of $60 million asset United Services CU, Ashville, N.C., approved a merger with $583 million asset Self-Help CU, Durham, N.C. The credit unions described the merger as a proactive step to capitalize on their relative strengths and expand impact within Western North Carolina.
Genie-Watt CU, with $14 million in assets in Bismarck, N.D., and $65 million asset Railway CU, Mandan, N.D., have merged. The merger creates cost savings by eliminating expenses and creating economies of scale with more assets and members, said Paul Brucker, Railway CU president Paul Brucker.
Argent CU, with $191 million in assets in Chester, Va., and $10 million asset Assurance FCU, Richmond, Va., will merge, effective Feb. 1, with Argent remaining as the surviving entity. Argent's long-term strategic objective of continued growth and operating efficiency, and focus on building the cooperative nature of the credit union system through strong merger partners, were cited as reasons for the merger.
Church Koinonia FCU, with $2.5 million in assets, has merged with $969 million Tennessee Valley FCU, Chattanooga, Tenn. Church Koinonia FCU was started by mostly black churches to serve low- to moderate-income families specialized in helping low-to-moderate income residents get loans (Times Free Press Sept. 22). Among the reasons cited for the merger by Church Koinonia FCU were increased regulatory requirements.
The National Credit Union Administration approved a merger between $849 million asset Goldenwest CU, Ogden, Utah, and $139 million USU Charter CU, Logan, Utah. The two credit unions combined will have 26 branches. USU CU branches will maintain its brand, but will acknowledge its association with Goldenwest in its signage (Standard Examiner Aug. 24).
Members of $3.5 million Lima (Ohio) Postal Employees FCU voted in favor of merging into TopMark FCU, also of Lima (The Delphos Herald Sept. 18). The merger, which received regulatory approval in July, became official Oct. 1. Postal Employee FCU's members will have access to more products and services, including more than 5,000 shared branching locations, 32,000 ATMs, real estate loans and more.
The Oklahoma State Credit Union Board and the NCUA approved the merger of $1.3 billion TTCU The Credit Union, Tulsa, Okla., with $43 million NEO FCU, Miami, Okla. (Tulsa World Sept. 7). NEO FCU's two branches will be added to TTCU 13 branches.