EAST WINDSOR, N.J. – The $426-million McGraw-Hill Federal Credit Union has announced a proposed merger with the $24.4-billion Pentagon Federal Credit Union.
In a statement first published by the New Jersey Credit Union League, McGraw-Hill said in July of 2018 its board had approved a merger resolution authorizing its management team to seek approval from NCUA for the merger and to put the proposal in front of its membership for a vote. That vote is now set for a Special Meeting of Members on March 11 at 5 p.m. at the AMA Executive Conference Center at 1601 Broadway in New York City. The conference center is located approximately 52 miles, or about 90 minutes, from the credit union’s headquarters. The credit union was founded in 1935 to serve employees of McGraw-Hill Companies in New York City.
The McGraw-Hill FCU website does not show any information on the member meeting, including under a section headlined “Member Updates.” Callers to the credit union are given the option of pressing a number for more information on the vote.
For the merger to proceed, the New Jersey league item said a majority of voters on the merger proposal must vote in favor.
Chairman’s Statement
“In evaluating strategic alternatives, we determined a merger with a credit union of larger scope, scale and similar culture and commitment to member value is the answer,” Board Chair Mary Herzich said in a letter to members, according to the New Jersey league.
MHFCU reported just $46,448 in net income at year-end 2018, but is well-capitalized at 10.35%.
McGraw-Hill FCU’s former CEO, Shawn Gilfedder, left the credit union in November of 2018 and is now CEO of Kitsap Credit Union in Bremerton, Wash.
McGraw-Hill FCU has more than 22,600 members. PenFed has approximately 1.7 million members.