Monday, May 16, 2011

Board and members approve CoBCU merger with CAFCU.

During a specially called members meeting April 29, Church of the Brethren Credit Union (CoBCU) members overwhelmingly approved a merger with Corporate America Family Credit Union (CAFCU) that will lead to a greater variety of products, service hours, and locations.

After more than 72 years of serving the Church of the Brethren with savings and loan opportunities, as well as checking accounts and online banking, CoBCU’s Board of Directors unanimously approved a merger proposal with CAFCU in March. CoBCU’s board was pressed to seek a partnership with a larger credit union due to the impact of a fragile economy, a declining demand for loans, and the inability for an institution of its size to offer adequate products and services while maintaining a balanced budget.

The state of Illinois approved the merger April 1, and the merger is set to be complete June 1. The vote by the CoBCU membership was the final step in completing the process.

"The Credit Union Board worked tirelessly to find a merger partner that would bring improved services and expanded locations for our members," said Nevin Dulabaum, president of Brethren Benefit Trust and a CoBCU member for 27 years and board member. "We feel that CAFCU is the best choice, and it’s great to know that our members agree. This will be a great new chapter in the life of our denomination’s credit union."

Over 50 members attended the meeting, and more than 300 members voted to approve the merger via proxy ballots that were sent out at the beginning of April. Both CoBCU and CAFCU staff were present to answer questions, including CAFCU president Peter Paulson.

Now that CoBCU members have approved the merger, they should anticipate receiving information from CAFCU ahead of the June 1 transition, as well as debit cards and checks where applicable.

After performing a thorough search of potential merger candidates across the country, the CoBCU board accepted a merger proposal from CAFCU, a $550 million credit union based in Elgin, Ill., that serves nearly 60,000 members across the country. This decision was based on CAFCU’s mission statement, excellent member service track record, familiarity with credit union mergers, financial stability, and impressive list of products and branch locations. Direct questions concerning CoBCU to Lynnae Rodeffer, director of Credit Union special projects, at 847-622-3384, or learn more about CAFCU at or by calling 800-359-1939.

-- Brian Solem is publications coordinator for Brethren Benefit Trust.

No comments: