The $180 million Chaco Credit Union in Hamilton officially merged into the $602 million Telhio Credit Union in Columbus Monday, creating the fifth largest cooperative in Ohio by assets, $783 million, and the fourth largest credit union by members of 76,100.
In addition, three other credit unions in Pennsylvania, Florida and Connecticut also announced three consolidation completions and one proposed merger.
Chaco CU will maintain its brand name.
“It was a natural fit to merge with such a highly respected credit union that has served southwestern Ohio for so many years much like Telhio has done in central Ohio,” Leslie Bumgartner, president/CEO of Telhio CU, said.
Chaco CU was founded in 1938 to serve the financial needs of employees at Champion Paper mill, which is no longer operating.
Chaco CU posted a new worth of 8.15% below peer average of 10.92% and an ROAA of 0.10% below peer average of 0.53%, as of June 2016, according to NCUA financial performance reports.
Telhio said the merger is part of its growth strategy.
The $1.8 billion Trumark Financial Credit Union in Fort Washington, Pa. is also growing through mergers by gobbling up small, financially challenged cooperatives in the Keystone state.
On Nov. 1, the $76.1 million Keystone Federal Credit Union in West Chester and its 7,135 members will consolidate into Trumark Financial.
At the end of the second quarter, Keystone FCU posted a net worth of 6.76%, below peer average of 11.42% and an ROAA of -0.86%, below peer average of 0.43%, according to NCUA financial performance reports. In 2011, 2014 and 2015, Keystone FCU posted net losses of $963,000 and recorded an additional net losses of $436,000 in the first half of this year, according NCUA financial performance reports.
In August, TruMark Financial applied for a merger application with the Pennsylvania Department of Banking and Securities to absorb the $21.4 million Dow Northeast Employees Federal Credit Union in Philadelphia that serves 1,995 members.
Although Dow Northeast posted a net worth of 16.34%, higher than peer average of 12.56%, it also recorded an ROAA of -1.51% below peer average of 0.30% at the end of the second quarter, according to NCUA financial performance reports. From December 2011 to June 2016, the credit union has posted total net income losses of more than $1 million, NCUA financial performance reports show.
In Pembroke Pines, Fla., the $40.4 million Ryder System Federal Credit Union in Medley merged into the $569 million Power Financial Credit Union.
Ryder System FCU was chartered in 1960 and serves more than 5,000 members. Ryder System is a Fortune 500 company that provides commercial fleet management in the fields of transportation and supply chain solutions.
At the end of the second quarter, Ryder System had a net worth of 21.92%, higher than peer average of 12.56% and an ROAA of -0.34%, lower than peer average of 0.30%, according to NCUA financial performance reports.
Kenneth A. Glenn, president/CEO of Ryder System FCU, is retiring, according to a joint prepared statement. As part of the merger agreement, Ryder System FCU Board Chair and Ryder Vice President of International Supply Chain Solutions Gene Sevilla-Sacasa was named as a director of the Power Financial CU board.
In Connecticut, the $21.3 million MiddConn Federal Credit Union in Middletown, Conn., merged into the $263 million Dutch Point Credit Union in Wethersfield, the cooperatives announced last month.
MiddConn FCU posted a net worth of 6.56%, below peer average of 12.56% and an ROAA of 0.20%, below peer average of 0.30%, according to NCUA financial performance reports.
Chartered in 1959, MiddConn FCU served 2,469 members.
