HARRISBURG, Penn./EAST WINDSOR, N.J.–Member credit unions of the Pennsylvania Credit Union Association and the New Jersey Credit Union League have voted in favor of merging.
As CUToday.info earlier reported here, the two groups entered into a non-binding letter of intent to bring the two organizations together in December 2018. On March 8, 2019, the boards signed a Definitive Merger Agreement, pending ratification by member credit unions in both states. Voting was open from May 1 to May 15
According to a statement, the combined organization is to be called the PA/NJ Credit Union Association. The proposal calls for Patrick Conway, president of the PCUA, to become president and CEO of the new trade association, while NJCUL CEO David Frankil will become president of the for-profit service corporation.
In addition, the merger proposal said there will be no reductions in staff, and that a new name has yet to be chosen, although plans do call for a rebranding. The PCUA/NJCUL said they expect the improved scale will allow for expansion.
The proposal initially calls for the two boards to be combined, with all members to remain. The size of the board will be reduced over time to six from Pennsylvania and six from New Jersey, with even representation from both states and across all asset sizes, according to the merger proposal. Plans further call for a realignment of the dues structure over a two-year period.
The new organization will bring together the strengths of two storied trade associations to enhance value to credit unions in both states, and will represent one of the largest regional credit union trade associations in the country, the PCUA/NJCUL said in a statement.
‘Exciting Day’
“This is an exciting day for credit unions in both Pennsylvania and New Jersey,” said Jeff DeBree, PCUA board chair and president and CEO of Penn East FCU, in a statement. “I would like to thank my fellow PCUA and NJCUL board members as well as our member credit unions in both states for their support of this new organization.”
“This is a new and exciting chapter for both of us,” said Andy Jaeger, NJCUL board chair and president/CEO of Credit Union of New Jersey, in a statement. “Joining forces with our good friends in Pennsylvania will lead to more growth and opportunity for the credit unions in both states. I thank my colleagues on both the NJCUL and PCUA boards as well as our member credit unions for their support.”
The rest of 2019 will be used to integrate the two organizations with the combination becoming effective no later than January 1, 2020, the associations said.
The Pennsylvania CU Association represents 368 credit unions with assets in excess of $45.7 billion and more than 4 million members. The New Jersey Credit Union League has 98 credit union members.