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News Now

CU System
CUs planting seeds for mergers
MADISON, Wis. (5/9/14)--Seasons mean change, and for some credit unions, this spring season means a merger with another credit union.
 
  • In California, the boards of South Western FCU, La Habra, with $132 million in assets, and CU of Southern California (CU SoCal), Whittier, with $710 million in assets, approved a merger. Pending approval by regulators and members, the resulting credit union will have about 75,000 members and retain all its branches. CU SoCal President/CEO Dave Gunderson will remain president, while South Western FCU's President/CEO Laura Poore will serve in an advisory role. "In planning for the future, both credit unions realized that a combined organization will bring greater strength and competitive advantages moving forward than either credit union had on its own today," Gunderson said.
     
  • Garden Savings FCU, a $280 million-asset credit union in Parsippany, N.J., and Essex Division Telephone FCU, Maplewood, N.J., announced plans to merge effective May 31 ( The Daily Exchange May 8). The credit unions will continue to operate under the name of Garden Savings and operate full-service branches in six different New Jersey locations. "Our members will be delighted with the added convenience now available to them," said Essex Division President/CEO Frank Maniscalco, while Garden Savings President/CEO Lou Vetere noted the serving the Maplewood area will help expand its overall presence in northern New Jersey.
     
  • According to its CEO, regulatory requirements and the associated costs were "part of the motivation" for the merger between Resources FCU, Richmond, Va., with $17 million in assets, and Petersburg, Pa.-based Peoples Advantage FCU, with $52 million in assets. Patsy Smith, CEO of Resources FCU, said the merger helps the smaller institution better deal with rising regulatory costs ( Richmond BizSense May 8). Smith will stay on as CEO of the combined credit union, which will retain the Peoples Advantage brand. Peoples Advantage's CEO Audrey Bollinger retired April 30.
     
  • On Wednesday, the boards of DuTrac Community CU, Dubuque, Iowa, with $571 million in assets, and School District 40 Employees CU, Moline, Ill., announced plans to merge ( Telegraph Herald May 8). After regulator and member approval, the combined entity will continue to be called DuTrac Community CU with Andrew Hawkinson as president/CEO. The merger "has tremendous potential to bring our members much more through the combined deposit and capital base and economies of scale available through a larger organization," said Mike Daly, board chair for $15 million-asset School District 40.
     
  • The members of Grove Community FCU, Greencastle, Pa., voted Saturday in favor of the approved merger with $1.03 billion-asset Corning (N.Y.) FCU. Ninety-six percent of the members in attendance voted in favor of the merger, set to occur this summer ( Chambersburg Public Opinion May 6). All Grove Community employees will join Corning, which is the remaining entity, and its current branch will remain open.


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