Belco Community Credit Union, headquartered in Harrisburg, Pa., and Cornerstone Federal Credit Union, Carlisle, Pa., on Thursday announced their intent to merge.
The two Central Pennsylvania credit unions were founded in 1939 and 1974, respectively. If their combination is approved, the new CU will serve approximately 63,000 members with assets of $555 million, under the Belco Community Credit Union name.
In October, the proposed merger received initial approval from both boards of directors. The plan must be approved by the National Credit Union Administration and the Pennsylvania Department of Banking, as well as a vote by the membership of Cornerstone FCU. If all approvals come through, the two CUs say their merger is expected to be finalized by fall 2017.
Members of the Cornerstone board of directors would join Belco volunteers to serve on committees, as associate directors and as voting directors. The two CUs said no branch locations will close as a result of the merger, and the approximately 200 employees of both credit unions will be retained.
"Over time, employees are expected to benefit from new professional opportunities as a result of the merger," the two credit unions said in a statement, adding the combination will "provide an improved member experience and added convenience for all members."
The two CUs said combining their operational resources and talent will enable them to expand their branch and ATM network, most notably in Mechanicsburg, Gettysburg, Hanover and Carlisle, and take advantage of back-office economies of scale, including technology. A combined asset and capital base will keep rates on financial products and services low, position the credit union for continued growth, and deepen community involvement, they said, noting, "Both Belco and Cornerstone share a charitable commitment to programs dedicated to children, families and financial literacy."
Preserving a Legacy
Leaders from both credit unions said they are working on the details of how to preserve the Cornerstone brand and its long-standing legacy.
Amey Sgrignoli, president and CEO of Belco Community CU, will serve as president/CEO of the combined credit union. Sam Glesner, current CEO of Cornerstone FCU, will become part of the executive team.
"Credit unions were founded on seven principles grounded in the philosophy of cooperation and member ownership. Today's announcement underscores our commitment to collaboration among cooperatives to benefit our members," said Sgrignoli. "We want to thank both boards of directors for thoughtfully planning a partnership that will offer competitive advantages to members and employees moving forward."
"Both Belco and Cornerstone were initially founded by regional telephone employees and share a common bond and commitment to our members, employees and communities," said Glesner. "We anticipate a seamless transition for our members and employees."
Belco Community Credit Union traces its roots back to 1939, when 25 employees of Bell Telephone Company each contributed $5 to start what then was known as Belco Federal Credit Union. As a result of continued growth, Belco today serves 52,000 members in the seven counties of Adams, Cumberland, Dauphin, Lancaster, Lebanon, Perry and York from 11 branch offices. Belco has assets of more than $450 million.
Cornerstone Federal Credit Union has grown steadily since it was founded in 1974 by the employees of the United Telephone Company – Eastern Group. In 2015, assets topped $100 million. Currently, 36 credit union staff, many of whom are long-term employees, serve nearly 11,000 members from three full-service branches in Carlisle and Newville. In addition, Cornerstone FCU maintains a student-run branch at Big Spring High School, Newville, Pa., where students, faculty, administrators, and staff have easy credit union access.
