Merger Approved

Published on April 12th, 2021

On Monday, April 5th, a Special Meeting of Members was held at LCU to vote on the proposed merger between Leyden Credit Union and Partnership Financial Credit Union (PFCU). The vote turned out to be overwhelming in favor of the merger. As a result, LCU will become part of PFCU on Tuesday, June 1, 2021. Members will be receiving a merger brochure in the mail that will answer common questions on their accounts and dates and timelines of the upcoming changes.

The LCU staff and Board of Directors attended the meeting. Mary Ann Pusateri, the CEO of PFCU, was also on hand to answer members’ questions with David Lukas, LCU’s President.

Some members asked, “Why is LCU merging?” In short, they explained that there are two main reasons.

First, according to financial industry experts, in order for credit unions to compete in the next decade, they need to be at the $250 million asset threshold to achieve economies of scale. LCU is only at 40% of this level.

Secondly, financial institutions make money primarily from interest income on loans and investments, with higher yielding loans being the more desirable. When there is a lack of loan volume, financial institutions have to rely more on investment income. LCU has been challenged by low loan volume for over a decade. Last year’s pandemic-induced economic downturn and the subsequent dropping of investment rates to stimulate the economy had a negative effect on LCU’s income due to our reliance on investment income.

As a result, in conjuncture of the knowledge that the long tenured CEO of LCU was stepping down from his position, the LCU board felt that it was an opportune time to seek a merger partner while LCU is still strong financially.

David and the board assured members that this decision was not made in haste. The process to find a merger partner began nearly two years ago when the CEO notified the board of his intention of stepping down from his position. Several credit unions were interviewed and Partnership Financial proved to be the best match.

Some members expressed concern that the merger would lead to an increase in fees and less community involvement. Ms. Pusateri assured members that this would not be the case. Partnership has a proven track record with mergers, including last year’s merge with Glenview Credit Union. She also stated that she has met with the Unity in Community Foundation and plans on continuing the strong relationship with the local charity.


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