FORT WAYNE, Ind. — Fort Financial CU and ITT Employees' FCU here have announced plans to merge.
The two CUs announced the move in a letter sent to ITT Employees' FCU members. In the letter, the board explained that the CU has been exploring merger options for many months after its corporate sponsor — ITT/Excelis — realigned its operations, seeking out a merger partner that was member-focused and offered similar services.
The $166 million-asset Fort Financial will absorb $35-million I ITT Employees' members, loans and assets. This is First Financial's third merger with a local credit union in the past four years.
"Fort Financial's federal charter, strong financials, scope of financial services and products, and local leadership make them an ideal choice," the letter said. "Members will be able to enjoy a larger branch network, more services and the strength and stability of a larger credit union."
ITT Employees' has 3,575 members and about $9 million in loans (concentrated primarily in credit cards and used car lending), according to its most recent call report. The credit union lost nearly $28,000 in 2013.
Steve R. Collins, Fort Financial's president and CEO, said in a statement that the move was "a positive step forward for all our members" and called the move "a perfect match."
In its December 2013 call report, Ford Financial CU said it had $1.5 million in net income last year, after assessments. Its net worth ratio was 8.48% ("well capitalized").
ITT Employees' FCU reported a loss of $1,898 from operations in 2013, with a net loss of $27,909 after assessments. Its net worth ratio was 9.85% ("well capitalized").
ITTEFCU members will vote on the merger at their annual meeting in May, once final regulatory approval is received.
"Both credit unions have deep roots in the Fort Wayne community," said Collins. "This merger will solidify ITTEFCU's membership in a credit union family."
