Bank Buys Credit Union

from Business First of Columbus, November 2, 2006

Nationwide Federal Credit Union members have approved a multimillion-dollar merger with Nationwide Bank.

Nationwide Bank said late Wednesday it will pay the credit union's 42,152 members a share of $79 million on a pro-rated basis, depending on how much each member had in their account as of March 31. The money will be credited to a Nationwide Bank account following the transaction's completion.

The merger between the two Columbus institutions is subject to regulatory approvals and is expected to be completed early next year.

Nationwide Federal Credit Union said 16,718 members participated in the 90-day voting process, with 14,872, or 88.9 percent, approving the deal.

"From the very beginning, the (credit union's board) took steps to ensure that this process was transparent and that the focus was on the members' best interests," Paula A. Edwards, president and CEO of the credit union, said in a release.

The credit union brings to the bank more than $523 million in assets.  Nationwide Bank's holding company, Nationwide Financial, announced in April of this year to begin offering retail services.  The offer to purchase the assets of the Credit Union was extended in June.


Posted by Mark Rodrigues at 11/2/2006 9:56 AM
Categories: Deposits, Credit Unions, Management
 

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  • 12/22/2006 5:47 PM Dina wrote:
    Members of one of the oldest credit unions in the nation have voted to convert their nonprofit institution to a for-profit federal mutual savings bank, officials disclosed on December 22, 2006.

    But some members of Lafayette Federal Credit Union aren’t giving up their fight against the plan, vowing to continue a petition drive designed to oust board members.

    Such conversions are fairly rare, with about 30 across the nation in the past decade, according to reports by the NCUA. There are some 9,000 federal- and state-chartered credit unions in the United States — about the same number as insured banks and thrifts, although banks have much more assets.

    Lafayette, which formed in 1935 soon after Congress passed the Federal Credit Union Act, filed for the conversion in June with the Office of Thrift Supervision. Officials cited reasons such as competition and regulatory concerns, plus boosting lending capacity for members.
    Reply to this

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