X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LENEXA, Kan.. – Education and “constant communication” are the keys to high membership retention following a merger, according to Community America Credit Union. The $1.3 billion Kansas City-based CU said it retained 9,500 of the 9,800 members of the defunct Farmland Credit Union of Kansas City after it was formally merged into Community America on July 1. Though the merger itself was not high profile, the collapse of the CU’s parent, Farmland Industries, one of the nation’s largest farmer-owned coops, had been widely aired on local TV and in newspaper stories for weeks as the corporation laid off hundreds of employees. Cognizant of member fears and concerns about the status of assets in the $45 million Farmland CU, Community America went to extra lengths to reassure Farmland CU members of a smooth transition. “We’re particularly pleased that we could get our message across and offer products that appealed to members of Farmland,” declared Lisa Ginter, executive vice president of Community America. Community acquired Farmland after the Kansas City CU sought a merger partner following a May 31 bankruptcy filing by Farmland Industries, which got into financial trouble over its investment practices. Farmland, which had been on the Fortune 500 list and had more than $1.1 billion in unsecured debt at its bankruptcy filing, has been steadily unloading subsidiaries including the sale of fertilizer and beef processing plants and negotiating to spin off pork processing and oil refining operations. In letters and e-mails sent to Farmland CU members last May, Community America’s president, Michael A. Patrick, as well as Ginter thanked members for “their loyalty and support” of the CU over 72 years and “now we look forward to this next chapter of excellent financial service to you.” Farmland members were urged to stop by a nearby Community America branch “to get acquainted” as well as log on to Community’s web site. In a May 7 letter, Patrick congratulated the Farmland CU membership “for approval of the merger” and giving “solid support for this exciting new direction.” The letter was signed by Michael Coffey, the former president of Farmland CU who has retired. Coffey also wrote it selected Community America as a merger partner based on the institution’s “high standards of integrity and excellent member service.” As part of the transition program, Community America stationed staff members in Farmland CU’s main office to answer member questions. At the merger, Farmland had 13 employees of which all were hired by Community and initially stayed on the job. – [email protected]

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.