Main Street FCU Looks Toward September Revote on Louisiana Merger
A Baton Rouge credit union, whose membership last January turned back a merger bid by the $276 million Jefferson Financial CU of Metairie, La. is preparing a revote, perhaps in September once it gets final NCUA regulatory clearance.
Officials of the $97 million Main Street Financial FCU, however, declined formal comment Thursday on a second ballot or the prospects of completing the consolidation.
It was learned new communication procedures including town hall sessions and emphasis on the merger’s positive features would be pursued by management to win a favorable vote.
In the initial rejection, Main Street members voiced worries about branch closings and employee layoffs, issues since dealt with, sources told Credit Union Times.
The Main Street board and its management have been working tirelessly to ensure the Baton Rouge credit union follows all of the NCUA procedures on a merger with Jefferson Financial, said one source close to the negotiations.
“The board has had to go through all the hoops but expects the payoff will be worth the cost considering the tech and product advances to be made through a merger with Jefferson, a growing Louisiana credit union with better rates on dividends,” said the official.
For months, Main Street has been operating without a permanent CEO after it struggled two years ago. In 2010 the credit union lost $2 million. It earned $14,000 in 2011 and $80,000 in the first quarter of 2012.
Main Street is the second credit union this month planning a revote of a spurned merger. The $64 million Montana 1st Credit Union of Missoula has scheduled a membership vote next Tuesday for a merger with the $452 million Horizon Credit Union of Spokane Valley, Wash.
Horizon has acknowledged it made mistakes in rushing through the merger packet and dealing with worries about out-of-state interests taking control.
Horizon also has agreed to a Montana 1st request to retain its name and a seat on the Horizon board should the merger pass this time.