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In August, the Board of Directors at Penobscot County Federal Credit Union and The County Federal Credit Union announced a proposed agreement to merge pending member and regulatory approval.
“After making this positive announcement, we immediately began preparing an application for a merger with our regulators at the National Credit Union Administration,” stated Ryan Ellsworth, President and CEO of The County FCU. “The merger application was submitted in late October. After their review of the merger application, we were notified about an additional regulatory requirement. Though we are still very confident we will receive NCUA support of our proposed merger, this added step will delay our anticipated target date of completion. We view this delay as a minor hurdle, but felt it was important to keep our memberships informed about the developments.”
“We are taking this relatively short time delay as an opportunity for each of our staffs to become more familiar with each other and each others’ operations,” stated Steve Baillargeon, President and Chief Executive Officer of Penobscot County Federal Credit Union. “The extra time allows us to review our policies, products, procedures, and better evaluate which processes are best for each respective membership going forward.”
Both credit unions are financially very strong. Each continues to achieve growth and success independently. Both credit unions’ net worth ratios far exceed regulatory requirements and are considered “well capitalized” by government regulators.
The proposed combined credit union will have a strong balance sheet, a full-service product offering, and a loyal member base. The successful completion of the process, including regulatory approval and an affirmative membership vote, all must occur before the merger can be finalized.