An unusual three-way merger in the same community – Columbus, Ohio – is taking shape as the three credit unions, Western CU, Powerco and Members First, form a $170 million consortium.
Discussions on the deal have been under way for months with regulatory paperwork already being submitted to the agencies on two of the merger partners, Western CU and Powerco. The addition of the $52 million Members First CU was formally announced Friday.
“We do look at our merger as a unique partnership since we will keep the individual brands” as a division of the surviving CU, said Powerco President/CEO Michael Shafer, the designated CEO of the combined CUs.
Shafer said he realizes individual brand retention “is not a new thing” but we remain “excited about doing something a little different in combining very similar size credit unions in creating a solid future for our members.” Powerco has $62 million in assets and Western has $60 million.
A new name for the combined CU will be selected “in the third quarter,” he said.
In the meantime, Shafer is serving as interim CEO of Western following the Dec. 31 retirement of its veteran manager, Tom Furrey.
Under a restructuring, Greg Kidwell, current treasurer and CEO of Members First, will become president of the combined organization, said Shafer. Members First has 6,900 members.