McGraw-Hill Federal Credit Union’s merger with a small Manhattan hospital CU, set for completion on Thursday, underscores a strategic approach SEG-based credit unions can implement to grow: seek merger opportunities that jump start expansion into new industries and membership fields.
That's the view of McGraw-Hill FCU president/CEO Shawn Gilfedder, who said his own SEG-based CU now expects to use the management, talent and influence of the $8.5 million St. Vincent’s Employees FCU as a launching pad to expand its SEG diversification in Manhattan.
Two longtime employees of St. Vincent’s Employees FCU–former CEO Arlene Bernard and Norma Carrasquillo–will join McGraw-Hill FCU as business development executive and branch administrator, respectively, McGraw-Hill FCU said.
By merging with a credit union with strong ties to the healthcare industry, the $264 million McGraw-Hill FCU aims to position itself as an appealing financial resource for the employees of other area healthcare providers.
St. Vincent’s, itself considered healthy and well capitalized, had sought out McGraw-Hill FCU of East Windsor, N.J., after its hospital sponsor closed its doors last year.
The 1,300-member CU – which served the hospital providing the closest trauma center to Ground Zero – ended up renting space while it opted to look for a larger CU as a merger partner.
“The decision by the management and board of St. Vincent’s to seek us out is basically fortuitous since we already have Manhattan branches,” said Gilfedder.
Relying on the St. Vincent’s model, McGraw-Hill FCU expects to promote its services to administrators in the health care sector who are seeking financial resources for their employees.
“We have a diversified membership and this simply adds to what we’ve been doing,” said Gilfedder, who also is chairman of the New Jersey Credit Union League.