University of Illinois Community Credit Union acquires tiny postal CU

Members of Urbana Postal Credit Union voted to merge into University of Illinois Community Credit Union at a special meeting held on April 14.

UICCU said in an April 15 letter posted to its website that the merger is expected to become effective on May 1.

Based in Urbana, Ill, UPCU had about $913,000 in assets and a little more than 300 members. Its only branch is scheduled to close April 26. The $346 million-asset UICCU is based in Champaign, Ill.

The postal credit union explained in a letter to members that it sought a merger partner because it “found challenges to growth” and also faced “increasing compliance requirements as well as technology costs.” UPCU added that after several years of “careful consideration,” its board concluded members would be best served by partnering with UICCU.

Urbana Postal’s closure marks the latest postal credit union to shut its doors. CUs serving employees of the Post Office used to span the country, but their numbers have thinned over time. Lansing, Mich.-based Lansing Postal Community CU last year merged into LAFCU, while Post Office Employees FCU in Shreveport, La. rebranded to reflect its ability to serve consumers beyond just postal workers.

According to call report data, UPCU posted a net loss of about $2,200 in 2018, after recording a net loss of $40,300 in the prior year. The 2017 net loss included a $45,500 provision for loan and lease losses. In the three previous calendar years (2014 to 2016) UPCU generated net incomes of a little more than $1,000 annually.

Meanwhile, UICCU posted net income of about $1.5 million in 2018, a 6.2% increase over the prior year.