ORONO, Maine–Two Maine credit unions have announced plans to merge.
The $480-million University Credit Union in Orono and the $28.1-million Changing Seasons FCU in Hampden said they are seeking to combine, pending regulatory and membership approval later this year.
“As separate institutions founded within a year of each other in the 1960s, serving members throughout the Greater Bangor region for more than 50 years, UCU and Changing Seasons share many roots, relationships, core values and commitment to the credit union movement,” Renee Ouellette, UCU’s president and CEO, said in a statement. “By merging, we are stronger and better positioned to fulfill our purpose-driven mission: to help Maine people and communities advance their financial wellbeing.”
Financial Performance
University Credit Union reported $1.81 million in net income in 2023, with capital of 9.07%. It has 28,766 members. Changing Seasons FCU reported $956 in net income in 2023 with capital of 7.27%. The CU has 2,101 members.
Changing Seasons’ seven employees, including its president and CEO, Rob Picard, will retain their jobs, the credit unions said.
University Credit Union was founded 57 years ago primarily for academic personnel. In January it received state regulatory approval to expand membership throughout 11 Maine counties.
Changing Seasons was established in 1966 as Bangor Hydro FCU to serve Bangor Hydro Electric Co. employees. Today, its membership includes the towns of Bangor, Brewer, Hampden and other communities in Penobscot and Waldo counties.
Picard said in a statement the decision to merge into UCU resulted from careful consideration of how best to serve members’ evolving needs for financial products and services.
‘Ideal Merger Partner’
“The board identified UCU as an ideal voluntary merger partner, and both institutions are moving forward with the merger process,” Picard said.
In a letter to members, Picard wrote, “After careful evaluation of our credit union over the past several years, it has become increasingly obvious that the cost of doing business for a small credit union has outpaced the ability to afford the next level of products and services desired by our members, leading us to explore a merger.”
The credit unions said Changing Seasons’ board approached University Credit Union as a voluntary merger partner.
“As a small credit union, operational efficiencies are a significant challenge, causing the cost of doing business to outpace the ability to bring the next level of products and services our members desire and deserve,” Picard said.
Branch to Eventually Close
The credit unions said the Hampden branch will remain open for a number of months, but it’s anticipated it will close by year end due to its proximity to UCU’s branch at 977 Union St. in Bangor, less than a five-mile drive from the Hampden branch.
In a statement, the credit unions said the merger will create opportunities for members to have access to a wide range of credit union products, services and technologies, he said.
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