600-member Maryland credit union to close its doors in merger
Members of CARCO Federal Credit Union, Denton, Md., recently voted to approve the $5 million-asset institution’s proposed merger into $1 billion-asset Educational Systems Federal Credit Union, Greenbelt, Md.
The official merger into Educational Systems FCU is scheduled to take place Oct. 1. CARCO currently serves employees and retirees of Caroline County Public Schools and their families, and has just 600 members.
The board of directors for CARCO FCU said it chose Educational Systems FCU as a merger partner because the latter shares CARCO’s core purpose of serving the education community, and the larger CU will be able to offer its members a broader range of product and service offerings.
On Aug. 30, Chris Conway, president and CEO of Educational Systems FCU, sent members of CARCO FCU a letter and a welcome kit with information on direct deposit, online and mobile bill pay, and more. The credit union is also incentivizing CARCO members to open a new checking account between Oct. 1 and Nov. 30. Qualifying accounts – including e-statements and direct deposit from an educational institution or Social Security – will garner a $300 cash bonus.
CARCO’s most recent call report shows a loss of nearly $75,000 during the first half of 2019, compared to about $25,000 in net income during the first half of 2018. As of June 30, 2019, its net worth ratio was 11.02% (“well capitalized”).
Educational Systems FCU listed $3.6 million in net income for the first half of this year – a steep jump from the $1.1 million it earned during the first two quarters of 2018. As of June 30, 2019, its net worth ratio was 9.11% (“well capitalized”).