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Members 1st Credit Union to gain new branch through ‘spin off’ agreement

Members 1st Federal Credit Union and First Harvest Credit Union are one step closer to spinning off a First Harvest branch to become a Members 1st branch.

The completion of the spin-off is subject to approval by First Harvest members of the credit union’s Williamsport branch, at a special meeting of members scheduled for April 8.

If members approve the transaction, the Williamsport First Harvest branch will begin operations as Members 1st, and tits customers will become members of Members 1st Credit Union.

If approved, the transaction is expected to close in the third quarter of this year, the companies said.

The transaction has been in the works for several months, according to a press release outlining the deal.

In October, the boards of both credit unions resolved to submit the spinoff transaction, after the benefits to membership and employees at the Williamsport location were reviewed.

In November, both organizations submitted the spin-off application to the National Credit Union Administration (NCUA), which is responsible for regulating federal credit unions insuring deposits and protecting credit union members. Approval by the NCUA was provided on Feb. 12.

“Opportunities such as this are exactly what the credit union movement is about — people helping people,” Mike Wilson, Members 1st president and  CEO, said in a statement. “By collaborating with First Harvest on this transition, we will be able to deliver unparalleled experiences to their Williamsport-based members and employees and give them access to our nearly 60 branches, our expansive network of surcharge-free ATMs and our robust digital banking platform.”

One of the benefits to Harvest First members is convenience, according to the companies. The Williamsport branch is the only Pennsylvania branch for the New Jersey-based Harvest First. Moving forward, members of the branch will have access to Members 1st’s nearly 60 Pennsylvania branches.

Another benefit, according to Members 1st, is the credit union’s financial strength and management experience needed to successfully integrate the Williamsport location.

Members 1st has committed to retaining the First Harvest Williamsport staff, and will provide training, benefits, and career development opportunities for the acquired staff. The branch will also continue to operate at the same location.

“Our objective is to provide convenient and local banking services to our members at each First Harvest location,” Mike Dinneen, First Harvest president and CEO, said in a statement. “As we evaluated the best ways to provide an outstanding member and employee experience to our team at Williamsport, it became evident that they would be better served by a strong, local credit union. We firmly believe that our Williamsport members and staff will be well-served as part of the Members 1st family.”

Members 1st operates nearly 60 branch locations across 10 Pennsylvania counties, including three locations in Berks County — in Exeter, Cumru and South Heidelberg townships.


Source: Berkshire mont

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