Mergers Remain Active as 2014 Ends
Iowa, Michigan and Ohio credit unions have announced new mergers that are expected to finalize in the fourth quarter or early next year.
Plans are moving ahead for the $179 million, 28,516-member Bay Winds Federal Credit Union in Charlevoix, Mich., to merge with the $225 million, 46,672-member Members Credit Union in Traverse City, Mich.
Earlier this month, both cooperatives said they will operate under a new name, 4Front Credit Union, when the consolidation is completed in early 2015.
“4Front epitomizes the type of institution we are confident we can be,” David Leusink, president/CEO of Bay Winds, said. “It’s creative like the way we solve financial problems, but also underscores our commitment to providing smart financial answers to keep our members out in front of an ever changing world and economy.”
Jan. 1, 2015 is the target date for the $38.9 million, 5,183-member Grand Rapids Family Credit Union in Grand Rapids, Mich., to merge into the $693 million, 99,690-member Michigan First Credit Union in Lathrup Village, Mich. Grand Rapid Family’s members approved the merger in September.
Members of the $7.1 million, 1,466-member Three I Credit Union in Burlington Iowa, voted Oct. 18 to merge with the $95 million, 9,402-member Alliant Credit Union in Dubuque, Iowa.
“Not only will this [merger] create greater economies of scale, but our southern Iowa members have asked for a location that allows greater access and we feel this mergers and the Three I branch will deliver,” Mike Moroney, president/CEO of Alliant, said. “Three I members will benefit greatly from the added products and services.”
The merger is expected to be completed Jan. 1, 2015.
On Jan. 31, 2015, the $25 million, 3,283-member Cardinal Federal Credit Union in Newark, Ohio, will merge with the $122 million, 13,595-member Fiberglas Federal Credit Union, also in Newark. In September, Cardinal’s members voted in favor of the consolidation.
“Both credit unions will keep the same offices and employees, but operating under a new corporate name can be expected in the future,” Jerry Jackson, president/CEO of Cardinal, said.
The new corporate name is Trucore FCU, according to the NCUA.
In other merger news, 20 mergers were approved in September, according to the NCUA’s Insurance Report of Activity. That number is down from the 25 consolidations in August.
Through September, the NCUA approved 193 mergers. That tally is down slightly from the 190 mergers the agency approved by the end of September 2013.
Seventeen of the mergers received NCUA approval for expanded services, including the Members CU-Bay Winds CU consolidation, which was the largest merger in September.
All of the other mergers were well under $50 million in assets.
Only one merger was approved by NCUA because of poor financial condition.
Although the $8.7 million EDCO Federal Credit Union in Amherst, Ohio, posted a net worth of 9.16% below peer average of 14.54% at the end of the second quarter, its ROA was 0.04% above peer average of -0.02, according to NCUA financial performance reports.
However, EDCO also posted an ROA of -0.44% at the end of the first quarter and -0.06 at the end of 2013, NCUA’s data showed.
The NCUA approved EDCO’s merger with the $53 million Community Start Credit Union in Elyria, Ohio.
Two cooperatives, the $11 million, 1,674-member Our Family Credit Union in Lancaster Pa., and Three I in Burlington, Iowa, received approval to merge because of lack of growth.
Our Family CU was approved to merge with the $409 million, 50,541-member Belco Community Credit Union in Harrisburg, Pa., and Three I received approval to consolidate with Alliant.