The Maryland and DC Credit Union Association and New Jersey Credit Union Leagues have decided not to merge, the organizations said Thursday afternoon.
The MDDCCUA also said it will move ahead in hiring a new CEO.
The two groups had said in February they were considering a merger and since then have done due diligence on the issue through separate committees, a study that led them to decide to stay independent, they said in a statement Thursday afternoon.
“It was an open, interactive process between both associations. The committees did an excellent job exploring the organizations and identifying the positives and negatives in merging the two well-established associations,” said Shawn Gilfedder, NJCUL chair and CEO of the $256 million McGraw-Hill Federal Credit Union in East Windsor, N.J.
“After reviewing the financial and business elements, service delivery, governmental affairs and advocacy, and possible governance and operational structures of a merger as well as the timeline, the Board has determined that the optimal course of action for MDDCCUA members at this time is to decline the merger opportunity in favor of hiring a new CEO,” the MDDCUA told its members in an email earlier Thursday from its chair, Miguel Boluda Jr., CEO of the $184 million PAHO/WHO Federal Credit Union in Washington, D.C.
In the joint statement with the NJCUL, Boluda added, “We couldn’t have been more pleased with the cooperation and good intentions of both sides throughout this exploratory process. Each association learned a lot as we explored a potential merger.”
The joint letter also said both associations are financially healthy “and providing robust member service to their affiliate base, making the need for a merger a matter of choice not necessity.”
While both associations said the timing was not optimal now for a merger, Boluda’s earlier email to MDCCUA members indicated that other merger proposals might be considered in the future.
“The Board has continued to believe that the potential benefits of regionalization are very strong and that exploring these opportunities when they present themselves is our fiduciary duty and responsibility,” the letter said.
Meantime, it has engaged D. Hilton Associates to conduct the search for a new CEO to succeed Mike Beall, who moved to the Missouri Credit Union Association last year.