The $490 million Freedom Credit Union of suburban Philadelphia and the $80 million Market USA FCU of Laurel, Md., on Tuesday unveiled mergers of smaller credit unions.
Freedom said it has taken over the struggling, faith-based Salem FCU of Jenkintown, Pa., with $200,000 in assets.
In Maryland, Market USA said effective Sept. 30 it would be merging the $6.7 million National Capital FCU of Landover, a suburban Washington, D.C., credit union that primarily serves credit union industry employees.
Joann Talbot, CEO of National Capital, said her CU had sought out Market USA as a merger partner after the 2,700-member CU found itself unable to meet reserve requirements. The CU with 6.6% net worth lost $151,000 last year and experienced a 17% decline in first-half income.
“Our board felt that it was simply too hard to compete and earn enough income to keep up with required reserves,” said Talbot.
National Capital was formed in 1949 and its membership is open to employees and directors of D.C.-area credit unions, and employees of the D.C.-area credit union league, CUNA and NAFCU, and their family members, according to its website.
In a statement, Market USA said “this partnership will provide additional value and expanded services to National Capital FCU members and allow Market USA FCU to grow and diversify its field of membership.”
Market USA FCU, said CEO Robert McClosky, “has one of the strongest net worth ratios among its peers. It is a participant in the Credit Union Shared Branch Network and several surcharge-free ATM networks providing over 4,300 branch locations.”
At Freedom, Lee T. MacMinn, president/CEO, said his CU “happily welcomes the members of Salem Baptist Church to the Freedom community.”
A release noted that Salem FCU “exclusively served the congregation of Salem Baptist Church, in Jenkintown and was established in 1884 and given the name, 'Salem' which means place of peace. Through its long history, Salem has welcomed such notable figures as Martin Luther King, Jr., Jesse Jackson and Rosa Parks.”
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