Chicago — The $95 million Kaiperm Federal Credit Union may have lost $2.1 million last quarter alone, but its location and membership base is worth more to merger partner $5.5 billion Alliant Credit Union, officials say.
"Year to date, Alliant has grown $650 million in assets, so this isn't about growth for us, just a good fit and a win for both groups of members going forward," said Frank Weidner, Alliant's senior vice president, member services.
Alliant, which counted on United Airlines as its single sponsor until expanding to serve SEGs in 2000, is headquartered in Chicago, home to United. However, the credit union's largest concentration of members is actually in California's Bay Area, Weidner said. San Francisco International Airport is a major hub, and the airline's maintenance operations are located there.
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Kaiperm's employer-based membership was also attractive to Alliant, which chose health care as a target SEG industry back when it expanded its field of membership.
Rudy Pereira, senior vice president, operations & technology, said Alliant has already signed a management agreement with Kaiperm, and is overseeing operations there. Alliant has not provided any monetary support to Kaiperm, Pereira said; however, Alliant hopes to have the merger approved and completed by the end of September.
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