Charlotte Metro FCU to Expand Out of the City
Planned acquisition of Premier FCU of Greensboro will occasion a new name.
Charlotte Metro Federal Credit Union said it expects to complete its acquisition of Premier Federal Credit Union of Greensboro, N.C., in August, following approval of the merger by Premier members.
Charlotte Metro ($739.1 million in assets, 63,133 members) announced Monday that members of Premier ($222.7 million in assets, 27,709 members) voted online and by mail to approve the merger. A special meeting for questions and concerns was held virtually on Zoom on March 29.
The Charlotte metro area casts a wide shadow over both sides of the North Carolina-South Carolina border, but the merger will draw in a membership base in mountainous western North Carolina that considers itself distinct from that larger metro area downhill.
Not surprisingly, Charlotte Metro said it plans to roll out a new name when the merger is complete.
Bob Bruns, president/CEO of Charlotte Metro, said the merger will “create a more expansive and competitive credit union to serve the financial needs of our members with increased accessibility, technology and financial products.
“This partnership is an exceptional milestone for our member communities and marks a new phase in the expansion of our personalized and comprehensive financial services,” he said.
Bruns will be CEO for the merged credit union. Eric Gelly, who joined Charlotte Metro in March 2020 as EVP/COO from CUNA Strategic Services, will become president. Lori Thompson, president/CEO of Premier, will become COO.
Based on NCUA data, the combined credit unions had $961.8 million in assets and 90,842 members as of Dec. 31. Their return on average assets would have been 0.50% for the 12 months ending Dec. 31, down 74 basis points from 2019.
The merger was one of 37 the NCUA approved in the fourth quarter of 2020.
Premier was charted in 1963 as Cone Mills Greensboro Federal Credit Union for employees of the textile mill, back when textiles were still the largest industry in the state. Premier currently serves members from seven branches in North Carolina.
Premier’s net income fell sharply in each of the first three quarters of 2020, followed by a net loss of $361,949 in the fourth quarter. For the year, net income was $361,135, down 81.6% from 2019. ROA fell from 1.06% in 2019 to 0.18% in 2020.
Premier’s net worth ratio was 13.82% on Dec. 31, down 237 basis points from a year earlier.
Charlotte Metro, which has 10 branches, ended 2020 with a net worth ratio of 8.98%, down 159 basis points from a year earlier. Its ROA for 2020 was 0.60%, down 70 bps.