AUGUSTA, Ga.–A small Georgia credit union has announced plans to merge into another CU that is 7,500 times larger.
The $205,635 Tabernacle FCU, which has 62 members, said it is seeking to merge into the $1.55-billion SRP Credit Union in North Augusta, Ga.
As of Sept. 30, 2021, Tabernacle FCU reported negative net income of $7,774 and net worth of 9.82%, while SRP FCU, which has 173,455 members, reported net income of $16.97 million and net worth of 11.06% as of the same date.
Tabernacle FCU said in its disclosure form filed with NCUA that it is merging because, as a smaller credit union it is finding it “increasingly difficult to maintain our relevance in the financial marketplace and to continue to adequately meet the needs of membership.”
The credit union said it plans to distribute a portion of its net worth to members in the form of a 5% “merger dividend” paid on members’ positive share account balances.
Tabernacle FCU is among the small credit unions that in the past were hit with financial penalties for filing call reports late with NCUA.