International Airline Employees Federal Credit Union (IAEFCU) will merge into SkyOne Federal Credit Union on March 1, the two CUs said Wednesday.
Hawthorne, Calif.-based SkyOne FCU has $381 million in assets and IAEFCU of Brairwood, N.Y., has $33 million.
The two credit unions they have a "strong alignment" because both represent employees across the airline industry, including the FAA, TSA, domestic and international carriers, airport services, and other workers that directly support the air transportation industry.
The combination will offer members additional financial services, technological enhancements and expanded business hours, they said. IAEFCU adds nearly 2,000 members to SkyOne's existing membership base of 32,000.
In its December 2013 Call Report, IAEFCU reported $17,237 in net income from operations, but then a net loss of $5,930 after assessments. Its net worth ratio was 13.3% ("well capitalized").
SkyOne FCU reported $5.1 million in net income for 2013, after paying $250,444 to the Corporate CU Stabilization Fund. Its net worth ratio was 10.4% ("well capitalized").
After March 1, all IAEFCU services will begin to be transitioned and offered under the SkyOne brand; and all IAEFCU assets and liabilities will be absorbed by SkyOne.
"At IAE, we have an unwavering focus on innovation and strong capital," John Gebhard, CEO of IAEFCU, said in a statement. "We wanted a partner that shared our commitment to delivering technological enhancements and value to our members."
Eileen Rivera, current president and CEO of SkyOne, who will retain this role in the combined entity, said: "SkyOne and IAEFCU not only share a common root in the air transportation industry, but we also share a common vision of providing convenient and affordable financial tools to our members. The merger provides greater economies of scale, which enable us to provide more services and technological enhancements to our members."
IAEFCU and SkyOne said their members will be able to access additional details on the impact of the merger online, including the conversion of IAEFCU products and services, on the SkyOne Members microsite starting next month. A link to the site will be provided to all members sometime during March.
