It must be credit union mating season.
The string of recent mergers among local credit unions continued this week with a deal between two institutions in Hopewell and Henrico.
I.B.E.W. Richmond VA Local 666 FCU, which represents members of a local electrical workers union, merged into the larger Hopewell Chemical Federal Credit Union.
I.B.E.W. Richmond VA Local 666 FCU had just $945,000 in assets, 1,100 members and one branch on North Parham Road. It had been operating at a loss over the past couple of years.
It joins the $28 million Hopewell Chemical FCU, whose 3,900 members are primarily employees of the Honeywell International and General Chemical Plant in Hopewell.
The credit union members of the International Brotherhood of Electrical Workers Local 666 overwhelmingly approved the merger, which became effective Oct. 31, according to a letter from Richard Starnes, the credit union’s manager.
The motive behind the merger was to provide I.B.E.W. members with products and services that were out of reach for the tiny credit union.
The deal marks the third such merger in recent weeks as small credit unions with limited offerings are having a tougher time competing against larger institutions.
In August, St. Paul’s Baptist Federal Credit Union, which was down to assets of $374,000, merged into Henrico Federal Credit Union, a $119 million institution.
Also this week, Fifth Street Baptist Church Federal Credit Union, a 40-year-old credit union with less than $100,000 in assets, merged into the $2 billion Virginia Credit Union.
Hopewell Chemical FCU was founded 1964 and despite its small stature is one of the more financially stable credit unions in town. It turned an $82,000 profit through the first half of the year.
I.B.E.W. Local 666 FCU was founded by union workers in 1954. It lost $34,000 in 2009, $43,000 in 2010 and $28,000 through the first nine months of this year.
Michael Schwartz covers banking for BizSense. Please send news tips to [email protected].
It must be credit union mating season.
The string of recent mergers among local credit unions continued this week with a deal between two institutions in Hopewell and Henrico.
I.B.E.W. Richmond VA Local 666 FCU, which represents members of a local electrical workers union, merged into the larger Hopewell Chemical Federal Credit Union.
I.B.E.W. Richmond VA Local 666 FCU had just $945,000 in assets, 1,100 members and one branch on North Parham Road. It had been operating at a loss over the past couple of years.
It joins the $28 million Hopewell Chemical FCU, whose 3,900 members are primarily employees of the Honeywell International and General Chemical Plant in Hopewell.
The credit union members of the International Brotherhood of Electrical Workers Local 666 overwhelmingly approved the merger, which became effective Oct. 31, according to a letter from Richard Starnes, the credit union’s manager.
The motive behind the merger was to provide I.B.E.W. members with products and services that were out of reach for the tiny credit union.
The deal marks the third such merger in recent weeks as small credit unions with limited offerings are having a tougher time competing against larger institutions.
In August, St. Paul’s Baptist Federal Credit Union, which was down to assets of $374,000, merged into Henrico Federal Credit Union, a $119 million institution.
Also this week, Fifth Street Baptist Church Federal Credit Union, a 40-year-old credit union with less than $100,000 in assets, merged into the $2 billion Virginia Credit Union.
Hopewell Chemical FCU was founded 1964 and despite its small stature is one of the more financially stable credit unions in town. It turned an $82,000 profit through the first half of the year.
I.B.E.W. Local 666 FCU was founded by union workers in 1954. It lost $34,000 in 2009, $43,000 in 2010 and $28,000 through the first nine months of this year.
Michael Schwartz covers banking for BizSense. Please send news tips to [email protected].