HARRISBURG, Penn.–Two credit unions here have announced merger plans.
The $450-million Belco Community Credit Union, based here, and the $105-million Corne
rstone Federal Credit Union in Carlisle, Penn., said they plan to combine their operations. Combined, the CUs will serve 63,000 members.
“The opportunity to combine operational resources and talent will enable these strong regional credit unions to expand their branch and ATM network, most notably in Mechanicsburg, Gettysburg, Hanover and Carlisle, and take advantage of back-office economies of scale, including technology,” the credit union said in a statement. “A combined asset and capital base will keep rates on financial products and services low, position the credit union for continued growth, and deepen community involvement. Both Belco and Cornerstone share a charitable commitment to programs dedicated to children, families and financial literacy.”
Belco Community will be the surviving name, but the CUs also said they were working on “details of how to preserve the Cornerstone brand and its long-standing legacy.”
Amey Sgrignoli, president/CEO, Belco Community Credit Union, will serve as president/CEO of the combined credit union. Sam Glesner, current CEO of Cornerstone FCU, will become part of the executive team.
“Credit unions were founded on seven principles grounded in the philosophy of cooperation and member ownership. Today’s announcement underscores our commitment to collaboration among cooperatives to benefit our members,” said Sgrignoli in a statement. “We want to thank both boards of directors for thoughtfully planning a partnership that will offer competitive advantages to members and employees moving forward.”
The merger received initial approval in October 2016 from both boards. Members of the Cornerstone board will be joining Belco volunteers to serve on committees, as associate directors and as voting directors.
No branch locations will close as a result of this merger and the approximately 200 employees of both credit unions will be retained.
Belco Community Credit Union traces its roots back to 1939, when 25 employees of Bell Telephone Company each contributed five dollars to start the new Belco Federal Credit Union. Cornerstone Federal Credit Union has grown steadily since it was founded in 1974 by the employees of the United Telephone Company – Eastern Group.
The merger still requires regulatory approval, but is expected to be finalized by the fall of 2017.