CARLISLE, Penn.–Those opposing the merger of Cornerstone FCU and Belco Community CU, which will be voted on here Thursday evening, are hoping last-minute communications will swing things in their favor.
As CUToday.info was first to report, a group of Cornerstone FCU members—the Committee for Cornerstone FCU Independence, which is headed by the CU’s former CEO Dave Keffer—has organized an effort to stop the proposed merger with Harrisburg, Penn.-based Belco. The effort incudes radio commercials appearing on three stations and newspaper ads that are urging CFCU members to vote no on the planned combination.
Keffer, who was CEO of Cornerstone for 33 years before retiring two years ago, asserts that the proposed merger is simply an example of a big credit union trying to buy its way into a market. Keffer also asserts that Cornerstone is not sharing all of the details of the merger with members, particularly both CUs’ performance metrics.
But the current leaders of the two credit unions disagree, as CUToday.info reported here, saying the merger is beneficial for each organization and that members are being openly communicated with.
On Wednesday morning the Committee morning distributed a release to local media hoping to get stories placed and spread their information to more members. The communication was also sent to about 200 members.
The release is headlined: Is the Future of the $ 1.3 trillion Credit Union Movement Being Decided in Carlisle PA on Thursday?
As CUToday.info has reported, Keffer and the Committee assert that Cornerstone outperforms Belco and has little need to merge. The new release shares performance metrics that favor Cornerstone, and it also refers to an article written by Callahan & Associates’ Chip Filson titled “Credit Unions for Sale?” Filson’s article asks “why these mergers are being negotiated secretly, without full terms being disclosed to the membership. Concerned members are given weeks or just days to learn why a merger is happening and it becomes virtually impossible to stop because the boards control all of the communications. Employees can’t speak up for their jobs are at stake and members often end up transferring their local credit union’s resources to outside control and management without having access to all of the facts.”
Keffer said he believes that if members don’t vote to keep Cornerstone independent, it will be a bad sign for the future of the movement.
“If that happens, then this merger would just be another example of what has been happening across the country,” said Keffer.
But if members vote against the combination, Keffer said it will show the Committee was effective in the short three-four weeks it had to communicate with members. “It would say that even with the limited exposure we have had, members spoke up.”
Keffer hopes that momentum has been building in favor of a no vote, but he is still uncertain of the outcome.
“If we get the rally we are hoping for tomorrow night, Cornerstone decisions stay local, and we don’t become a big corporation, so to speak,” said Keffer. “We had a very strong showing at the information session held Friday at the main Cornerstone office. Members asked some hard questions of Cornerstone and Belco leaders. I have talked with three past Cornerstone board chairmen who all say they will be at Thursday’s vote supporting us—I may be able to get another past chairman there as well.”