With compliance concerns as a backdrop, the $23 million Southpointe CU of St. Louis has agreed to merge the nearby $1 million North Jefferson County Catholic CU by Sept. 30.
Though North Jefferson remains well capitalized at 16%, the Arnold, Mo., credit union had started soliciting merger partners last January.
“It's a basic economics of scale issue for them,” said Brian Eyestone, president/CEO of 2,600-member Southpointe, located in unincorporated south St. Louis County.
The faith-based North Jefferson, which lost $25,000 last year and $8,000 in the first half, was unable to keep up with changing conditions “and keep on top of all the new Dodd-Frank regulations,” said Eyestone.
The 423-member credit union, located in a church rectory, has been open Wednesday nights and on Saturdays.
The two CUs share similar history since before it moved to community charter and changed its name Southpointe was the Assumption Parish CU.
“We're always happy to help out but merging other small credit unions is not our style or our goal,” said Eyestone, who is a director of the Missouri Credit Union Association.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
