State Farm Bank, CUs Vehemently Deny Rumors Of Merger

BLOOMINGTON, Ill. – As speculation swirls around rumors that State Farm Bank and the 12 State Farm federal credit unions that recently received NCUA approval to merge into one entity might together merge into one multi-billion dollar financial institution, both sides are vehemently denying the move. “I’m not sure where the rumor came from but there is no truth to it,” said Tom DeWitt, president/CEO of Farm-Great Lakes Federal Credit Union. “Unfortunately, we’ve been linked in some articles that talked about Nationwide (credit union merger with Nationwide Bank). But there have been no discussions about merging.” NCUA approved the 12 State Farm FCUs’ merger application June 6. The merger would create a $3 billion CU serving 136,000 members. State Farm Bank opened in May 1999 and has 485,000 active accounts and $5 billion in assets, according to State Farm Insurance’s Web site. State Farm Insurance Spokesman Fraser Engerman said discussions to merge with the CUs are simply false. He, too, has seen State Farm linked to news about the Nationwide merger. “I can tell you unequivocally no,” Engerman said. The rumors are simply wrong. There are no plans. We’ve heard some analysts (speculate) about it but there are no plans to merge.” Meanwhile, DeWitt said they are moving forward with voting packages, which are expected to be distributed to members by the end of July.