Belco Community CU to Acquire Neighbor in Pennsylvania

A small credit union with declining members in southeast Pennsylvania has agreed to be acquired by the nearby Belco Community Credit Union of Harrisburg, Pa.

The acquisition of Wilmac Employees’ Credit Union of York, Pa. ($3.5 million in assets, 504 members at Dec. 31) came as a result of the sale of its sponsor Wilmac Corp. in late 2021, the credit unions said in a news release Monday.

Wilmac Corp.’s headquarters is at the same address as the credit union in downtown York, 20 miles north of the Maryland state line and 25 miles south of Harrisburg. The company was founded in 1957 and operated four skilled nursing facilities for the elderly in southeast Pennsylvania.

The company’s sale prompted Wilmac Employees’ CU officials to broach the possibility of a merger with leaders of Belco Community ($812 million, 70,964 members).

Both boards gave initial approval in December, and the merger is expected to be finalized by April 30. Wilmac Employees’ CU was founded in 1976 and operates at the one location in York.

Wilmac’s assets had fallen 4.8% and its members had dwindled by 21.9% in the 12 months ending Dec. 31. For the year, it had a net loss of $8,429 or a -0.24% return on average assets, down from ROA of 0.48% for 2020.

Its net worth ratio stood at 18.45% on Dec. 31, up 67 basis points from a year earlier.

Belco Community earned $8.5 million last year, or 1.09% ROA, up 41 basis points from a year earlier. Its net worth ratio was 9.96% on Dec. 31, up 19 bps from a year earlier.

Had the merger occurred Dec. 31, it would have reduced Belco Community’s ROA by 1 bps and raised its net worth ratio by 4 bps.

Amey Sgrignoli, president/CEO of Belco Community, said Wilmac Employees’ CU has members across seven counties.

“Providing current Wilmac CU members with the ability to continue their credit union experience is something we look forward to,” Sgrignoli said. “We welcome their members to the Belco family. We are confident we can provide them with an exceptional experience that will meet their current and future needs.”

Pending regulatory and membership approval, all Wilmac Employees’ CU members will have access to any of Belco Community’s 14 branch locations. They will also have access to debit cards, online banking, ATMs and ITMs.

Wilmac Employees’ CU Chair Tom Shugars said the merger announcement shows the credit unions’ “commitment to collaboration among cooperatives to benefit our members.”

“We are looking forward to working through this process with Belco and are confident our members will be satisfied with the expanded services Belco can provide.” Shugars said.