The $600 million Franklin Mint Federal Credit Union of Broomall, Pa. announced an agreement to merge the $52 Main Line Health Employees FCU of Bryn Mawr in a deal to be completed in the third quarter.
John D. Unangst, president/CEO of FMFCU, stressed the consolidation is still subject to regulatory and member approval and is one that removes member overlap and service duplication following a local hospital merger.
"This is a positive merger of two very healthy credit unions and is not done like some of those XYZ bank mergers you read about to take care of depleted capital," declared Unangst.
Discussions began last year, said Unangst, and have proceeded in 2010 as both CUs perceive economies of scale by consolidating duplicate software systems. FMFCU had already been handling mortgage processing services for Main Line.
Main Line, formed in 1976, has three branches and 16 employees. Branches are located at Lankenau, Bryn Mawr and Paoli Memorial Hospitals. Franklin Mint also has health employees in its FOM.
FMFCU has 28 branch locations, nine of which are in local hospitals and five in Philadelphia area high schools.
Frank Dougherty, Main Line president/CEO, said its board "selected FMFCU as a merger partner because our core philosophy matches their philosophy. In addition, FMFCU current branch locations most matched where our 7,000 members live."