CU Merges with Former CU
SYRACUSE, N.Y.-In a somewhat cannibalistic move that is becoming more common, a federal credit union merged with a former credit union last month. The $8.4 million Salt City Hospitals Federal Credit Union of Syracuse, N.Y. has merged with Beacon Federal, a former credit union mainly serving Carrier air conditioning employees, according to NCUA's Regional Director's Actions Taken Under Delegation of Authority. CU Financial Services President Alan Theriault said that Beacon Federal had previously gobbled up Caney Fork Cooperative Credit Union (November 2001) and Professional Teachers Credit Union (July 2001), both of Tennessee. Salt City Hospitals had 3,786 members and approximately $9 million in assets. Theriault explained that most credit union mergers with banks are for economies of scale, as opposed to thrift conversions, which are typically aimed at increasing business lending, expanded fields of membership, and access to capital. A majority of members voting (minimum 15) must vote in favor of the merger for it to pass, Theriault said. In addition, Roper Employees Federal Credit Union merged with Carolina Federal, a credit union turned mutual, two years ago.