CommunityWorks Federal Credit Union in Greenville, S.C., has merged with Self-Help Credit Union in Durham, N.C.
Members of the $3.4 billion-asset CWFCU had approved the merger last week, and the deal closed on Monday.
Martin Eakes, CEO of the $1.1 billion-asset Self-Help, said in a press release that this merger will bring additional products and services to CWFCU’s members, while retaining “the passion for service that made the organization so unique.”
Chartered in 2014, CWFCU was formed to provide financial services to the unbanked and underbanked in Greenville. The institution was organized by CommunityWorks, a non-profit community loan fund focused on affordable housing, financial stability and small business lending. After four years, CWFCU served nearly 1,500 members and had completed 765 loans totaling more than $4 million.
However, CWFCU struggled with reaching sustainable growth. The board examined how to “scale its products and services to bring homeownership and financial stability” to more of the Greenville community, according to the press release. Research subsequently showed that it would take over a decade to raise enough funds to offer mortgage loans, according to a press release.
CWFCU posted a loss of roughly $24,000 through the first half of this year, compared with a loss of $49,000 for 2017. Loans totaled $2.5 million through the first half of this year while delinquent loans were about $104,000.
“The board decided that we would look at strategic partners that could help us get there faster,” John Malone, CWFCU’s chairman, said in a press release. “When Self-Help Credit Union made the offer to combine efforts, our board felt that they are the best strategic partner we could bring to the community.”
United Way of Greenville County and Hollingsworth Funds, a Greenville-based entity formed to invest in local nonprofit organizations and initiatives, were foundational supporters of CWFCU’s mission and provided the initial capital for it to open.
“We launched the credit union as an alternative to predatory lending in our community,” Deborah McKetty, CEO of CommunityWorks and former CEO of CWFCU, said in a press release last week. “The products CWFCU provides allow members to build credit and achieve important financial milestones like homeownership.”
Self-Help CU posted net income of about $5.8 million in the first half of 2018, after recording net income of $9.7 million in 2017.
