VALDOSTA, Ga. — Tiny $12.2 million Nashville Credit Union is looking to merge into $198 million Southeastern FCU here, in a move both institutions are calling "strategic in nature."
The two boards of directors announced their intent to merge on Wednesday, citing the need for Nashville CU — which is based in Nashville, Ga. — to improve its menu of products, services and technology, as well as giving Southeastern an expanded member base.
The smaller CU also cited the burden of regulations in its decision.
The deal is subject to regulatory and member approval. The two credit unions say they expect the merger to be completed in the fourth quarter of the year.
"We are extremely pleased to welcome Nashville Credit Union members, employees and supporters to the Southeastern Federal Credit Union family," said Mike Gudely, president and CEO of Southeastern FCU, in a prepared statement. "As our two organizations combine, Nashville Credit Union members will continue to experience the exceptional member service and friendly faces they are accustomed to with no service interruptions."
Gudely said Nashville's members would see additional product offerings and access to enhanced technology if the merger goes through.
Tina Burkhalter, president/manager of Nashville CU, added: "It is important we retain our identity as a credit union that is committed to the Nashville area and our members. With the rapidly increasing demand for technology and convenience, and growing regulatory burdens, a merger with Southeastern Federal Credit Union is the ideal solution for our membership."
Southeastern FCU was chartered in 1953. It currently serves more than 25,000 members through five branches in Valdosta, Tifton and Moody AFB. It has a 10-county charter designation in South/Central Georgia.
In its June 2014 call report, Southeastern had $750,042 in net income in the first half of this year. Its net worth ratio as of June 30 was 8.61% ("well capitalized").
In 2013 Southeastern reported more than $1.4 million in net income, after paying $123,280 to the Temporary Corporate CU Stabilization Fund. Its net worth ratio was 8.62% ("well capitalized").
Nashville CU was chartered in 1973 and serves over 2,600 members from one branch.
In its most recent 5300 report, Nashville had a first-quarter loss of $5,893. Its net worth ratio as of March 31 was 12.72% ("well capitalized").
In 2013 the credit union made $18,209 from operations, but had to pay $8,804 to the Temporary Corporate CU Stabilization Fund, leaving it with net income of $9,405. Its net worth ratio was 12.73% ("well capitalized").
