The $600 million Franklin Mint Federal Credit Union of Broomall, Pa., announced last week an agreement in principle to merge the $52 million Main Line Health Employees FCU of Bryn Mawr in a deal to be completed in the third quarter.
John D. Unangst, president/CEO of Franklin Mint, stressed the consolidation is subject to regulatory and member approval. He added that the merger 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," Unangst said.
Discussions began last year, said Unangst, and proceeded as both CUs perceive economies of scale by consolidating duplicate software systems. Franklin Mint 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 care employees in its FOM.
Franklin Mint FCU 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 his 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."