Rare Credit Union Roll-Up to Hit the Markets

SYRACUSE, N.Y. – Beacon Federal Bancorp, a conglomeration of five converted credit unions, plans to raise as much $100 million in an initial public offering, one of the biggest offerings ever for a former credit union. Beacon, chartered in 1953 as Carrier Employees FCU, serving the erstwhile air conditioning giant, was one of the first credit unions to convert to mutual savings bank in July 1999. Since then the ex-credit union has acquired four smaller credit unions upon their conversions to mutual savings banks: Professional Teachers FCU, Caney Fork FCU, Salt City Hospital FCU, and earlier this year, Marcy FCU, creating a $675 million regional savings bank with a diverse branch network in Syracuse, Tennessee, Texas and Massachusetts. Proceeds form the offering will be used to pay down debt and finance potential other acquisitions of credit unions and banks, the company said. The offering, which will go first to depositors, then to the public, is being underwritten by Keefe Bruyette & Woods, which will earn as much as $1 million for its work.