Several Credit Unions on the East Coast Plan Mergers

Credit unions in Connecticut, New York and Maryland recently announced proposed mergers, while credit unions in California and Washington said their consolidations have been recently finalized.

The $1.1 billion Sikorsky Financial Credit Union in Stratford, Conn., and the $32 million Bridgeport City Employees Federal Credit Union filed an application to merge, the State of Connecticut Department of Banking said Tuesday.

The proposed combination is expected to close on March 31, but the merger documents have not been posted yet on the NCUA’s website that lists planned consolidations.

Bridgeport City Employees’ eight employees, including President/CEO Carle A. Skudlarek, serve 3,862 members and operate one location. The credit union was chartered in 1959.

Earlier this month, the $191 million Marriott Employees’ Federal Credit Union in Rockville, Md., said it plans to merge with the $2.6 billion USAlliance Federal Credit Union in Rye, N.Y.

If approved by Marriott Employees’ members and regulators, the proposed merger will be USAlliance’s ninth consolidation in 12 years.

The proposed merger documents have not appeared yet on the NCUA’s website.

Marriott’s 32 employees, including President/CEO Susan E. Wolfe, operate a corporate office that serves more than 22,000 members. The credit union was chartered in 1953.

The $348 million Cascade Federal Credit Union in Kent, Wash., said last week that it completed a consolidation with the $8.8 million Tacoma Narrows Federal Credit Union in Ruston on Nov. 1.

Tacoma Narrows was chartered in 1951 and served 825 members.

According to TNFCU’s merger documents filed with the NCUA, $150,000 of its total $1.3 million in net worth is expected to be distributed in two parts after members approved the consolidation on Oct. 31.

The first part includes a distribution totaling $112,500 to be divided among all members considered active and in good standing as of June 30 of this year. Each member is also expected to receive a bonus dividend that is approximately 1.5% of the total of the member’s shares, share certificates and IRA share balances.

The second part of the distribution is expected to total $37,500 to be divided among member borrowers who are active members and current in their loan payments as of June 30. In addition, each member borrower is expected to receive an interest refund that is approximately equal to 55% of the loan interest they paid between Jan. 1 and June 30 of this year, according to merger documents.

The $1.3 billion Frontwave Credit Union in Oceanside, Calif., also announced on Nov. 1 that it completed its merger of the $6.3 million Barstow Community Credit Union in Barstow, Calif.

Barstow Community was chartered in 1954 and served 1,284 members.