The merger of the $70 million State Central Credit Union of West Allis, Wis., into the $1.5 billion Summit CU is now nearly complete, but State Central members received a bonus last month recognizing their loyalty-a $5.2 million dividend.
The stipend also recognized State Central's 20% capital ratio.
The distribution, one of the largest in the state and part of the original February merger deal, came on June 30 at the close of State Central's consolidation with Madison-based Summit. The management of both CUs paid tribute to member loyalty.
"We're happy to welcome State Central into our organization and we understand their decision which was part of the original merger agreement," explained Rebecca Gerothanas, senior vice president of marketing at Summit.
In comments made to the local media, James Coraggio, the retiring president/CEO of State Central, said, "It's the members' money and rightfully theirs. We just felt we were doing what was right."
State Central noted that it had remained profitable during the worst times of the financial crisis with $13.7 million in income at the end of the first quarter. The funds distributed represent 9% of share balances as of Oct. 31, 2009.
The merger with Summit was made official June 30 but final computer conversion of accounts will be completed by Sept. 1, Gerothanas said.
--jrubenstein@cutimes.com
