The Pennsylvania Credit Union Association and New Jersey Credit Union League have agreed to merge to form a new trade association, one of the largest mergers of state credit union leagues in recent years.
The two leagues said on Monday that subject to approval by membership of both PCUA and NJCUL at a vote to be held in early May, the deal will take effect January 1, 2020. The merged organization will operate initially as the PA/NJ Credit Union Association, though a “comprehensive rebranding effort” is expected in the future.
As reported, Pennsylvania credit unions closed out 2018 with
The combined organization will be led by Patrick Conway, the current CEO of the Pennsylvania league, while David Frankl, the current CEO of NJCUL will become president of its for-profit service corporation. The two leagues’ for-profit service corporations, PCUA Solutions and the NJCUL Service Corp., are expected to eventually be combined, with Frankl leading that unit. The two leagues’ foundations will operate separately for the foreseeable future but will eventually be merged.
“Joining together will result in greater scale and capacity to better deliver on everything we do. We will be able to invest more into products and services to help our credit unions grow and flourish,” Jeff DeBree, PCUA board chair and president and CEO of Penn East Federal Credit Union, said in a statement.
Andy Jaeger, NJCUL board chair and president and CEO of Credit Union of New Jersey, stated “we believe that our two organizations will be better together and provide compelling value and ROI to our credit unions.”
The Pennsylvania league is headquartered in Harrisburg, while the New Jersey league is based in Hightstown, and the combined entity will keep offices in both states since the league will advocate for CUs on both sides of the border.
The merger is not expected to lead to any job cuts, but league leaders cautioned that combining the two organizations will entail some one-time up-front costs that will be incurred over the next two or three years.
“The combined organization will be very well capitalized, and projections for the next three to five years are strong,” the leagues said.
League leaders will also work to align dues structures for the new association over a two-year period, and organizers promised there will be no increase in dues and some member CUs could even see their dues decrease.
Geographic proximity has led to both leagues working closely together for several years, organizers said, and this merger will serve as an extension of that collaboration.
“Both organizations are strong financially and are combining from a position of strength to better serve our members,” organizers added.
A board chairman for the new association will be determined by a vote, and chairmanship will subsequently rotate between individuals from the two states. Both leagues’ current boards will be maintained initially, though over time the size will be reduced to six members from each state.
Prior to the merger, the Pennsylvania Credit Union Association represented 392 institutions with more than 4 million members and over $45.7 billion in assets. The New Jersey League represented 87 member CUs with $4.95 billion in assets.
