Maryland credit union continues expansion after merger with Montgomery County Teachers FCU.
In a change of heart, Maryland’s $388 million Educational Systems Federal Credit Union is putting to rest the idea of a merger conversion fee to help defray expenses in its takeover of the once-ailing $401 million Montgomery County Teachers FCU of Derwood, Md.
Educational Systems FCU CEO says new members can instead make up for merger costs by increasing use of services.
Educational Systems CEO said fee in a merger deal may be breaking new ground but that it’s only fair to his existing members.
Merger partner says fee would raise $2 million to pay for loan losses and restore merged Maryland credit unions' financial health.
Despite recent activity, the NCUA has said it is not in the business of pushing mergers in 2012. According to an agency spokesman, there is “an upsurge in mergers this year which is likely due to the ability of continuing credit unions to assume the responsibilities associated with mergers as...
Tuesday order did not catch merger partner unaware, Educational Systems president/CEO says.
Maryland credit union in process of merging with Educational Systems FCU.
Credit unions' cooperative nature demonstrated in lack of hard feelings in merger and field of membership expansion overlap.
Educational Systems and Montgomery County Teachers similar in size, have long geographic, people ties.