The members of the financially struggling Postmark Credit Union in Harrisburg, Pa., voted Thursday to approve the Sept. 1 merger with the $952 million Xceed Financial Federal Credit Union in El Segundo, Calif.
While Teresa Freeborn, Xceed Financial’s president/CEO, said in a prepared statement that Xceed Financial has many members and key employer group partners such as TE Connectivity and Tyco in the Harrisburg area, the Postmark CU branch will remain open – giving Xceed Financial its first branch in the Keystone state.
In addition to its three branches in the Golden State, the California cooperative operates one branch each in Connecticut, Florida, North Carolina, New Jersey and Texas, and six branches in upstate New York.
Freeborn also said she sees “tremendous opportunities for growth in central Pennsylvania” with Postmark members and the credit union’s other employer groups.
With 67,122 members, Xceed serves more than 300 employer groups across the nation.
Founded in 1933, Postmark managed $29.1 million in assets and served 2,261 members.
Although Postmark had a net worth of 15%, it posted a net loss of more than $430,000 from 2011 to 2015, along with declining loan income over the last five years, according to NCUA financial performance reports.
In addition, the credit union recorded net income losses of $24,328 and $35,428, at the end of the first quarter and second quarter of this year, respectively. As of June 30, the credit union’s ROAA was -0.24%.
In March, Xceed Financial completed its first merger of 2016 with the $102 million Reach Federal Credit Union in Menlo Park, Calif.
