Ohio Consolidation: Pathways Financial Takes in WECU CU
The $27.2 million WECU Credit Union in Marysville, Ohio, has merged into the $192 million Pathways Financial Credit Union in Columbus, Ohio.
This merger agreement is Pathways’ second since it was founded after what was believed to have been the first triple merger in Ohio: the consolidation of Columbus-based credit unions Members First, Powerco and Western in August 2012.
In April, the $2 million, 295-member Burgess & Niple Employees Credit Union in Columbus also merged into Pathways Financial CU.
The 3,122-member WECU Credit Union, formerly Westreco Employees Credit Union, was established in 1972 to serve the financial needs of Westreco employees and their family members. The credit union’s field of membership includes employees of Nestle, Memorial Hospital of Union County and Midwest Express Group, among others.
This consolidation follows the strategic merger model that Pathways launched in 2012 when each merging credit union continues to utilize the trade name associated with their former credit union, according to Pathways Financial.
This strategy enables Pathways to leverage the brand equity cultivated by each respective partner credit union among its members and the communities it serves, the credit union said.
Over the past five years, WECU Credit Union has been struggling financially posting a net loss of $12,615 last year, according to NCUA financial performance reports. In 2008, the credit union lost more than $136,000. Though WECU recorded a net income of $47,987 in 2009, its net income continued to decline to $29,340 and $15,958 in 2010 and 2011, respectively.
Nevertheless, Mike Shafer, president/CEO of Pathways Financial Credit Union, said the merger will expand Pathways’ presence in Union County in central Ohio with a branch location in Marysville.