Pike Teachers Credit Union, a $7.4 million-asset institution in Troy, Ala., is seeking members’ approval to merge into Montgomery-based Guardian Credit Union.
Pike Teachers serves just 1,800 members and, like many small credit unions, has no website or other online presence. The merger would provide members with a wider variety of products and services, increased options for accessing their accounts, and better loan and deposit rates, according to a notice sent to members.
One PTCU branch is expected to close should the deal be approved, though all staff members are expected to be offered jobs.
Because Pike Teachers has a higher net worth than Guardian Credit Union, a portion of that will be paid out to members once all merger-related expenses have been paid and anticipated losses are settled. The combined institution would hold nearly $660 million in assets and serve almost 75,000 members.
Pike Teachers Credit Union lost nearly $25,000 during the first half of 2020, nearly ten times more than its losses during the same period last year, driven in part by reductions in investment revenues and noninterest income, and increased charge-offs.
