CARLISLE, Penn.–A group of Cornerstone FCU members here, including its former CEO, has organized an effort to stop a proposed merger with Harrisburg, Penn.-based Belco Community Credit Union. The effort incudes radio commercials appearing on three stations that are urging CFCU members to vote no on the planned combination.
Leading the Committee for Cornerstone FCU Independence is Dave Keffer, who was CEO of the credit union for 33 years before retiring two years ago. Also on the Committee are Cornerstone FCU members Liz Settle, Laura Beaver, Lennie Searer, Don Failor, and Harvey Clouse. All say they are opposed to the proposed merger and determined to keep Cornerstone independent.
The $450-million Belco Community and the $105-million Cornerstone Federal Credit Union announced plans to merge in late 2016. In an FAQ on the Cornerstone CU website, it says the merger is an “opportunity to combine operational resources and talent (that) will enable these strong regional credit unions to expand their branch and ATM network…and take advantage of back-office economies of scale, including technology. 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.”
The two CUs said plans call for the merger to be finalized by the fall of 2017. Ballots have been sent to Cornerstone CU members regarding the merger; a membership meeting is also scheduled for March 2.
But the Committee for Cornerstone FCU Independence is arguing that claims being made in support of the merger cannot be substantiated, stating that loan rates at the smaller Cornerstone are actually better than Belco, and deposit rates are similar, while fees are also lower.
CUToday.info has reached out to Cornerstone FCU for comment.
Stressing Local
“Cornerstone FCU is a strong local credit union that has been serving members and business in the greater Carlisle area for 43 years,” said Keffer. “Our members enjoy better loan rates, higher returns and lower fees,” he said. “We don’t charge a fee to anyone who uses our ATMs. We believe we should keep the capital, services and excellent, loyal staff we’ve built up over four decades here. Cumberland County’s interests are at the heart of Cornerstone.”
Cornerstone, he noted, is a community credit union serving only Cumberland County members; Harrisburg-based Belco Community Credit Union, serves seven counties, he said.
As part of a statement released by the Committee for Cornerstone FCU Independence, Chris Petsinis, owner of the North Hanover Grill in Carlisle, Penn., said, “Sixteen years ago, Cornerstone FCU made us a loan for our restaurant when nobody else would. We’ve done well – last year was our best year. Cornerstone had faith in us – we have faith in them and believe they should remain independent. We are voting no to the merger.”
In addition to the radio ads, flyers have also been posted all over town and door-to-door meetings with members and business owners are planned. They will stress the need to keep Cornerstone locally owned, managed and controlled, according to the Committee.
The Committee is urging members of Cornerstone to turn out for two events being hosted by the credit union to ensure their voices are heard. The first is an information meeting being held at Cornerstone’s main office tonight, Feb. 24, where members are being told they should ask if the merger is in “the best interests of Cornerstone FCU members and Cumberland County?” The second is the member meeting being held at the Comfort Suites in Carlisle on March 2 where a member vote will also be held.
Cornerstone, founded in 1974 by telephone workers, has 11,000 workers.
CUToday.info will have ongoing updates on this story, including Cornerstone FCU’s perspective, should comment be provided.
Radio Spots
Below is one of the three radio scripts running on local radio:
ANNOUNCER: FOR 43 YEARS, CORNERSTONE FEDERAL CREDIT UNION HAS PROVIDED YOUR FRIENDS, NEIGHBORS AND BUSINESSES RIGHT HERE IN CUMBERLAND COUNTY WITH TRUSTED PERSONAL SERVICE. THEY’VE BEEN LOCALLY OWNED, MANAGED AND CONTROLLED. AND YOU’VE ENJOYED BETTER LOAN RATES, LOWER FEES AND NEIGHBORLY HELP. BUT ON THURSDAY, MARCH 2ND AT 5 AT CARLISLE COMFORT SUITES, A MEETING WILL BE HELD ASKING YOUR PERMISSION TO MERGE CORNERTONE WITH A HARRISBURG-BASED CREDIT UNION, TRANSFERRING CONTROL ACROSS THE RIVER. AND EITHER AT THE MEETING OR BY MAILED BALLOT, YOU’LL HAVE A DECISION TO MAKE.
(INSERT MEMBER TESTIMONIAL)
IN YOUR OWN INTEREST, ATTEND THE MEETING OR MAIL IN YOUR BALLOT AND ASK TO KEEP CORNERSTONE’S LOCAL MANAGEMENT. KEEP BETTER SERVICE. KEEP BETTER RATES, HIGHER
RETURNS AND FEWER FEES, AND KEEP CUMBERLAND COUNTY’S INTERESTS AND NEEDS AT THE HEART OF CORNERSTONE. ON MARCH 5TH, VOTE NO ON THE MERGER PROPOSAL. CORNERSTONE FEDERAL CREDIT UNION. VOTE TO KEEP IT LOCAL.