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Indianapolis-based Financial Center First Credit Union—one of the largest credit unions in central Indiana—plans to take over Indianapolis Post Office Credit Union in a merger, the organizations announced this week.
The merged operations will operate under Financial Center name. The credit unions are targeting a merger date of May 1, pending approvals.
Established in 1953, Financial Center First has nine offices in Indianapolis, Muncie and Kokomo. The credit union has assets of $884 million, 60,000 members and 196 employees. According to IBJ research, Financial Center First is the fifth largest credit union in the Indianapolis market.
The Indianapolis Post Office Credit Union was chartered in 1925 and has assets of $50 million, 3,100 members and four employees. Its sole location is in the downtown post office at 125 W. South St. IBJ research shows that Post Office Credit Union is the 15th largest in the Indianapolis market.
Financial Center First CEO Cameron Minges will lead the combined organization. The Post Office Credit Union’s existing office will continue to operate post-merger and all of its employees will keep their jobs, Financial Center First said.
“As the credit union has evaluated the increasing regulatory burden it’s faced and the challenges in competing against much larger financial institutions, it came to the conclusion that a merger was in its members’ best interests—and that’s what eventually drove them to consider Financial Center as a merger partner,” said Indianapolis attorney Brett Ashton, who serves as the Post Office Credit Union’s legal counsel.
According to an announcement posted on the Post Office Credit Union’s website, the credit union has entered into a consent order with the Indiana Department of Financial Institutions and American Share Insurance “in connection with deficiencies identified in management activities, board oversight, corporate governance practices and profitability and liquidity risk management.”
Ashton said the consent order was issued in late December, but he declined to say whether that order was directly related to the credit union’s desire for a merger.
Ashton declined to provide IBJ with a copy of the consent order. IBJ is seeking a copy of that order and has filed a public records request with the Indiana Department of Financial Institutions.
The merger still requires approval from the credit unions’ membership, the National Credit Union Administration and the Indiana Department of Financial Institutions.
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