Members of Cornerstone Federal Credit Union, Carlisle, Pa., voted in favor of a proposed merger with Belco Community Credit Union in Harrisburg, Pa., the two credit unions said Friday.
The member vote took place Thursday evening at a special meeting. Approval came despite an attempted protest led by a retired Cornerstone FCU CEO.
The proposed merger received initial approval from both boards of directors in October 2016, and
The merger is expected to be finalized in September, and will result in Belco serving nearly 65,000 members in the central Pennsylvania area, with assets exceeding $555 million.
Belco and Cornerstone share a similar history, as both were originally chartered to serve local telephone company employees. Belco was founded in 1939 by 25 employees of Bell Telephone Company. Today, Belco serves 54,000 members, operates 11 branch offices, and has assets of more than $450 million. Cornerstone was founded in 1974 by employees of the United Telephone Company – Eastern Group, and grew to serve over 11,000 members from three full-service branches in Carlisle and Newville, as well as a student-run branch at Big Spring High School in Newville. In 2015, Cornerstone’s assets topped $100 million.
“We are excited to announce the approval of a partnership that will offer numerous advantages to both members and employees moving forward,” Amey Sgrignoli, president and CEO of Belco, said in a statement. “This merger brings together two strong credit unions, positions the future credit union for continued growth, and allows us to increase our competitiveness in the marketplace. The efforts of both credit unions to get to this point emphasizes our commitment to collaboration among cooperatives to benefit our members.”
“Belco Community Credit Union was identified as the ideal merger partner because of its shared focus on exceptional member service and community involvement, its long history of financial stability, and its willingness to allow us to preserve our local roots,” said Sam Glesner, current CEO of Cornerstone FCU, who will become part of Belco’s executive team following the merger. “Our goal was to ensure long term sustainability for our members and employees, and we are confident that this merger will accomplish that.”
The Belco Community Credit Union name will remain the same. Leaders from both credit unions said they are working on the details of how to preserve the Cornerstone brand and its long-standing legacy.
No branch locations will close as a result of this merger, the two CUs said, adding 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,” officials said.
“We warmly welcome the members of Cornerstone to the Belco family, and we look forward to working with our new employees to offer added convenience and enhanced technology to our entire membership, while perpetuating the ‘people helping people’ philosophy that guides all credit unions,” added Sgrignoli.
Belco membership currently is open to anyone who lives, works, worships, volunteers or attends school in Adams, Cumberland, Dauphin, Lancaster, Lebanon, Perry or York counties.
