Corning Does ‘Emergency’ Merger of Small Pennsylvania CU
The $896 million Corning Credit Union in New York acknowledged Wednesday it is completing an “emergency” merger of the $5.7 million American Community FCU of Chambersburg, Pa. effective Jan. 1.
The consolidation of the troubled American Community has been in the works for the past several months, “working with their examiners on a solution,” said Jason Bierman, Corning’s director of corporate development.
American Community has one branch and 1,600 members, retains 3.80% net worth, and lost $17,000 last year and $41,000 through the first three quarters of 2011.
The merger of American Community would be the first for Corning in several years, said Bierman and given the “pattern impacting small credit unions, there could be more opportunities down the road. But we have nothing specific at the moment.”
Corning, based in Corning, N.Y., has 16 branches, mostly in southern New York. It has two branches in Pennsylvania, one near Pittsburgh and the other in Greencastle.
“Greencastle is about 10 miles from the American Community office,” Bierman said, adding that would remain open.
A press release from Corning noted also that “both credit unions have collaborated extensively over the past several months, during which time ACFCU has also been without a CEO.”