TALLAHASSEE, Fla.–Credit unions have announced plans to merge in three more states.
In Florida, the $7-million Tallahassee Community FCU said it is seeking to merge into the $123.4-million Buckeye Community FCU in Perry, Fla. TCFCU reported net income of $12,795 at Sept. 30 with capital of 10.11%, while Buckeye Community reported $467,882 in net income and capital of 9.45% as of the same date.
In its disclosure form, Tallahassee Community FCU said the reasons for the merger include that it will “provide greater convenience for our members, particularly with the surcharge free ATM network presto at Publix supermarkets throughout Florida, and a significantly expanded menu of member products in services delivered in person and electronically. Additionally, for a credit union of our small asset size, compliance with increasingly complex regulations forced on all credit unions since 9/11 takes an enormous amount of staff time.”
TCFCU has fewer than 600 members. It said all of its employees will join Buckeye Community FCU at a higher rate of pay or the midpoint of the salary range for their position with BCFCU.
TCFCU said CEO Jack D. Davis will become VP-commercial lending with Buckeye FCU.
The credit union said it will not distribute any portion of its net worth to its members.
The merged CU will have close to 11,000 members.
Mississippi: Smaller CU More Profitable
In Mississippi, the $16-million Jackson-based Commfirst FCU is seeking to merge into the $24.7-million Brightview FCU in Ridgeland.
In its disclosure form, Commfirst FCU cited numerous reasons for seeking to combine, including expanded services, increased convenience and distribution channels, additional loan options, including real estate loans, economies of scale, and improved benefits for its own employees.
Commfirst FCU said three of its current board members will become voting board members of Brightview FCU, and two current board members will be appointed as advisory board members of Brightview and will become voting members as soon as feasible.
Commfirst FCU said there would be no distribution of capital and no merger-related payouts to management or board members.
Commfirst FCU reported $121,142 in net income and capital of 14.83% as of Sept. 30, while Brightview reported $3,290 in net income and capital of 9.45%.
Sheila Bridges, CEO of Commfirst, is to become CEO of the combined credit union, according to its disclosure.
Massachusetts: The Cost of Costs
In New Bedford, Mass., the $20.5-million Coastal New England is asking its members to vote on a merger into the $237.4-million Taunton Federal Credit Union in Massachusetts.
In its disclosure form with NCUA, Coastal New England FCU said “increased costs of regulatory compliance compressed operating margins, and the rising costs of cyber security systems and trained staff required to ensure the safety and soundness of member private data and accounts have impacted the operating efficiency of the credit union.”
CNEFCU said there would be no net worth distribution, citing “depleted capital reserves” of 6.02%. The credit union reported a loss of $36,012 on its Sept. 30 call report. Taunton FCU reported $1.36 million in net income and capital of 10.83%.
There will be no payouts related to the merger to management or board members.
The credit unions, which will have approximately 21,000 members when the merger is complete, said all CNEFCU employees will be retained.