Maine credit score unions name off merger

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Two Maine-based credit score unions have known as off their proposed merger.

Maine State Credit score Union in Augusta and Midcoast Federal Credit score Union in Freeport have agreed to discontinue their plans to merge, the businesses mentioned in a joint launch March 15.

The 2 establishments announced merger plans in October. The merger would have created the state’s second-largest credit score union.

Earnings had been down significantly for each credit score unions in 2020.

Maine State earned $1.7 million in 2020, in contrast with $2.8 million the yr earlier than, based on name report knowledge from the Nationwide Credit score Union Administration. That was pushed partially by rising bills, a decline in noninterest revenue and a rise in charge-offs.

The $218 million-asset Midcoast FCU misplaced almost $338,000 in 2020 after incomes $1.5 million the earlier yr. The credit score union noticed an almost 25% improve in noninterest bills final yr, due partially to a 43% ($1.7 million) improve in staffing prices. Cost-offs and allowances for mortgage losses had been each additionally up barely.

The deal had acquired preliminary regulatory approval, however each organizations agreed that continuing was not in the perfect pursuits of their members and workers, based on the discharge.

“The problem of bringing collectively two profitable organizations is simply that each credit score unions have been thriving individually and cultural alignment is troublesome to attain,” mentioned H. Tucker Cole, president and CEO of the $531 million-asset Maine State.

“All merger discussions ended amicably. We are going to proceed to work collaboratively to advertise the worth of credit score unions for Maine customers,” mentioned Midcoast FCU president and CEO Joe Gervais.

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