LA PORTE, Ind.–Two new mergers are planned among credit unions, according to disclosure forms filed with NCUA.
Announcing plans to merge are Municipal Employees Credit Union in La Porte, Ind., which is seeking to merge into La Porte Community CU.
The $1.1 million MECU reported net income of $6,929 on its Sept. 30 call report, with capital of 18.57%
MECU said in a statement to members it is closing after 40 years because it cannot “exist without outside data processing” not can it afford a core data processing system.
MECU said it does not plan to distribute any of its capital to its 230 members as part of the merger because La Porte Community offers “additional services.” The CU also indicated no members of management will receive any extra compensation as a result of the merger.
La Porte Community CU has $60 million in assets and approximately 8,000 members.
Merger In Iowa
Meanwhile, in Iowa, the $1.3-million Des Moines Water Works CU said it is seeking to combine with the $69-million Des Moines Metro CU, which has approximately 6,500 members.
DMWWCU’s Sept. 30 Call Report shows the credit union reported a loss of $1,097, with capital of 14.15%.
In its disclosure form, Des Moines Water Works said its board believed its limited asset size made the credit union unsustainable. The credit unions said it would close its single office as part of the merger, and that it plans no distribution of capital to 460 members. No member of management will receive any bonus compensation.
The DMWWCU member vote deadline is Dec. 20.