When it comes to credit union mergers, the practice of "slash and burn" often fails, according to Atlanta's $1.1 billion Associated Credit Union. That's why its CEO is making a strong case this week for the business model allowing individual "divisions" or independent CU units.

"We've seen too many of these mergers in which member loyalty is diminished, the key asset— employees—are let go and money gets wasted for brand awareness with poor results," observed Lin Hodges, CEO of ACU, headquartered in Norcross, an Atlanta suburb.

As an alternative, ACU has successfully pursued the "division" approach for its first major merger of an Augusta CU a year and a half ago and the result has been increased profits and members, contends Hodges.

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