HOMESTEAD and PEMBROKE PINES, Fla. - To position itself more prominently in what they describe as a highly competitive marketplace, $136 million Pan Am Horizons Federal Credit Union and $391 million Power 1 Credit Union have announced their plans to merge.

Pan Am Horizons will merge its operations into Power 1 to produce a $525 million credit union, which will serve more than 60,000 members with an 11-branch network. When the merger is complete, the new organization will be called Power 1 Credit Union, with corporate headquarters at Power 1's current headquarters in Pembroke Pines. Henry Prior, president/CEO of Power 1, will remain in those roles and Allan Prindle, president/CEO of Pan Am Horizons, will serve as executive vice president and chief operating officer.

"Becoming a larger, more efficient credit union will help us to provide better services to our combined membership and achieve a higher level of sustainable growth in the highly competitive South Florida marketplace," said Prior and Prindle in a statement.

Both organizations said they recently signed a letter of intent and regulatory approval is expected in the next few months. Members of Pan Am Horizon must approve the merger after regulatory approval. The merger agreement will be completed approximately one month after the approval from Pan Am Horizons' members and the merger is expected to conclude in late September.

Operational efficiencies will increase as a result of the merger, creating more sophisticated and innovative products and services for members, according to both credit unions.

"We will also have the ability to generate funds for expanding our branch network in untapped high-growth areas-thus creating greater location convenience," the CEOs said.

The merger is in line with the industry's continued credit union consolidation trend. In 2005, there were 9,087 U.S. credit unions, compared with 14,543 in 1990 and the number is expected to fall to 6,850 by 2015, the CUs reported. But at the same time, the remaining credit unions are typically much larger in size, providing more resources to enhance financial services for members, and to achieve economies of scale in their internal operations, they added.

It is too early to tell whether there will be any staff reduction. Both credit unions said they will conduct a complete analysis at a later date.

"As we proceed with the merger process, we will remain focused on serving the financial needs of our valued members," Prior said. "That mission will be just as important tomorrow as it is today."

Pan Am Horizons has a long history in South Florida. Pan Am Horizons Federal Credit Union was originally chartered as Buccaneer Credit Union on September 9, 1946. A special meeting of the membership elected to change the name of the credit union to National Airlines Employees Credit Union on July 6, 1956. When Pan American World Airways acquired National Airlines, the credit union was renamed Pan American-National Employees Credit Union on March 19, 1980. Continuing its evolution, it changed its name to Pan Am Miami Federal Credit Union in March 1985. Florida Horizons Federal Credit Union was a community-based credit union previously known as Homestead Air Force Base Federal Credit Union. It served the active and retired military as well as civilian personnel assigned to the Homestead Air Force Base. Due to the complete devastation that Hurricane Andrew left behind, the Air Force Base was downsized to the Homestead Air Reserve Base. This resulted in Pan Am Miami Federal Credit Union and Florida Horizons Federal Credit Union joining forces in October 1994.

Power 1 was formed in 1951 to serve the employees and family members of Florida Power and Light Company. Its field of membership has since expanded to serve more than 160 select employee groups and residents in 30 cities. -msamaad@cutimes.com

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Pan Am Horizons FCU, Power 1 CU Combine Forces to Compete in `Highly Competitive' South Florida Market

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