RALEIGH, N.C.—In its approval of First Citizens BancShares acquisition of Entegra Financial Corp. and its subsidiary Entegra Bank, the Federal Reserve Board found that in several North Carolina banking markets credit unions exerted competitive influences mitigating the anti-competitive effects of the merger, one analyst is asserting.
The board specifically evaluated the competitive impact of the merger on the banking markets of Cherokee, Transylvania County, Jackson, and Macon County.
The Board found in these four banking markets, North Carolina’s State Employee’s Credit Union (SECU) exerted a “competitive influence,” stated Keith Leggett, who is the former senior vice president and senior economist at the ABA, on his blog.
“For example, the Board found in the Cherokee banking market, which is comprised of Cherokee and Clay Counties, that 21% of the residents were members of SECU. In addition, SECU operates street-level branches that are easily accessible to residents in the market and controlled approximately $166 million in deposits in the Cherokee banking market. The Board also noted that there was another credit union in the market offered a wide range of products and its field of membership included almost all of the residents in the banking market,” stated Leggett.
A Look at 3 Markets
In the other three banking markets, almost 28% of market residents in the Jackson banking market, approximately 21% of market residents in the Macon County banking market, and 12% of market residents in the Transylvania County banking market were members of the SECU. In addition to SECU, two of the banking markets have other credit union competitors, Leggett said.