Members of $29 million POSTMARK Credit Union, Harrisburg, Pa., on Thursday voted "overwhelmingly" to approve a merger with $952 million Xceed Financial Credit Union, based in El Segundo, Calif.
POSTMARK Credit Union was founded in 1933 to support U.S. Postal Workers in the Harrisburg area. Xceed Financial CU has 70,000 members nationwide. This is the
According to a press release from Xceed, the proposed merger is supported by both credit unions' boards of directors and management, and recently was approved by the National Credit Union Administration. With Thursday's vote by POSTMARK's members, the merger is scheduled to take effect Sept. 1.
Both CUs describe themselves as "workplace" credit unions, with membership open to employees of their Select Employer Group partners nationwide.
"Xceed already has many members and key employer group partners, such as TE Connectivity and Tyco, in the Harrisburg area, so we are excited about the opportunities this merger offers to deepen those relationships," said Teresa Freeborn, Xceed Financial's president and CEO.
Freeborn said POSTMARK's Harrisburg location will remain open and become an Xceed Financial Center. "We also see tremendous opportunities for growth in Central Pennsylvania, as we share our very competitive product line with our new POSTMARK members and partner with our new POSTMARK employer groups to bring personalized financial wellness resources to their workplaces."
POSTMARK Credit Union said it is financially sound, but noted "greatly-expanded regulatory requirements and technological changes" have been "particularly challenging" for smaller credit unions, including POSTMARK.
The CU said its board and management have been searching for a "strong and compatible strategic partner capable of meeting the financial needs of members."
"Xceed Financial is a full-service, nationwide financial institution, but member service is still its top priority, and that was one of the key reasons our board and members chose to merge with Xceed," said POSTMARK Credit Union's current president and CEO Dave Frey, who will join Xceed Financial's management team following the merger. "This merger adds incredible value for our 2,255 members and 23 employer partners, who will now have access to comprehensive financial products and services, a nationwide network of 80,000 surcharge-free ATMs, and industry-leading online, mobile and video banking platforms."
Xceed Financial operates Financial Centers and sales offices in seven states. Earlier this year, $100 million Reach Federal Credit Union, Menlo Park, Calif.,
