mergers and aquisitions
CommunityAmerica Credit Union in Lenexa, Kan., announced last week it officially merged with UNIFY Financial Federal Credit Union in Allen, Texas on Nov. 1, establishing a national footprint in 18 states and 22 markets.
Based on the credit unions’ third quarter Call Reports, the combined organization now manages $8.8 billion in assets, $6.2 billion in loans with a workforce of 1,500 employees who operate more than 100 branches and serve over 622,000 members.
Community America said 18,000 member ballots were cast, and that the merger question “passed by a significantly wide margin” on Oct. 31. The merger was announced earlier this year.
“This merger marks an exciting milestone for CommunityAmerica as we expand our access to serve more members across the country,” CommunityAmerica President/CEO Lisa Ginter said in a prepared statement. “Our shared commitment to exceptional member service, complementary strengths and a branch network in attractive markets made this merger a great fit for us. I am most excited to advance our mission to enrich communities and help even more people get on a path to thrive and achieve financial peace of mind.”
However, not all members supported the merger.
The NCUA received 13 comments about the consolidation but posted nine of them. Seven of those did not support the merger.
“My local credit union is starting to become just another mega financial institution,” Thomas S wrote. “I am voting against this merger.”
“I oppose this merger,” Tina T wrote. “We do not need another merger to attempt to monopolize the banking industry.”
“CommunityAmerica is profitable and located within a distinct geographic area,” Joanna W. wrote. "Unify is a hodgepodge of geographies and identities. This helps neither institutions. Why do this if both are profitable?”
Michael W., a UNIFY member, initially opposed the merger.
“It is my belief that CommunityAmerica is, in essence, taking over UNIFY while using our federal charger to do so - and the fact that UNIFY members have no vote or meaningful say in this process is both unfair and unacceptable,” Michael W. wrote.
However, a few days after he posted that comment, he updated his comment in favor of the consolidation after he had a discussion with Ginter. Michael W. said Ginter addressed each and every concern he raised with absolute professionalism and accuracy.
“I am more at ease with this merger as a Unify member. I feel after discussing the concerns it may actually be a good thing. If I was a CommunityAmerica member, I would at this point vote yes! I was not expecting a direct response (from Ginter) and was delighted to receive on(e). This proves to me she is someone who cares for mem(b)e(r)s of her credit union.”
CommunityAmerica said it plans to add new branches, including ATMs and Express Teller Machines in several new markets across the U.S.; expand hours for member services with the “bench strength” of UNIFY’s call center; create new jobs; and make more investments in technology, products, services, civic and philanthropic support.
Contact Peter Strozniak Peter.Strozniak@arc-network.com.
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