CINCO Family Financial Center of Cincinnati and Superior Credit Union of Lima, Ohio, have entered into an agreement to combine their operations.
Under terms of the deal, CINCO will integrate its $117 million in assets and 11,500 members with Superior, which has $720 million in assets and more than 67,000 members.
The combined organization will operate under the name Superior Credit Union and the transaction has already received approval from state and federal regulators.
Upon completion, which is expected to occur on October 31, the current members of CINCO will gain access to Superior’s 14 branch locations in Ohio and its “wider array” of financial products and services, including mortgage products, online & mobile banking, insurance, and small business services.
Also, current Superior members will gain full-service access to CINCO’s two branch locations in Cincinnati.
“We realized that by combining operations, our members could benefit greatly from the products and services that Superior already has in place,” Mark Schweinfurth, CEO of CINCO, said in a statement. “CINCO members will still see the same faces they have grown to know over the years, but now they get more products to go along with them. This is definitely the right move for our membership.”
Phil Buell, president and CEO of Superior, stated that among credit unions “consolidation is done for the sole purpose of benefiting members. This is a decision to combine assets and provide additional services to the membership. We feel that adding locations in Cincinnati will complement our other branches throughout the state.”
Kurt Neeper, SVP of Superior Financial Solutions, the Superior CU’s wholly-owned CUSO, told Credit Union Journal all CINCO employees and executives will be retained.
In a letter to CINCO members, Schweinfurth and board chairman Gregory Spilman wrote that the decision to merge with Superior came after “extensive research and review to determine how best to improve and enhance the financial lives of our members.”
The CINCO bosses also explained that “over the past several years, it has become increasingly difficult to offer our members the best products, services, and rates they deserve. And going forward, we expect the financial marketplace will become even more competitive.”
By merging with another credit union, they added, “we can continue to provide you with competitive financial services while maintaining our cooperative principles.”
They further noted that while there will “inevitably” be some differences between the two institutions, Superior “already offers lower fees & loan rates and higher deposit rates than CINCO is currently offering to members.”
According to its call reports, CINCO posted net income of about $91,000 in 2016, after recording a net loss of approximately $29,000 in the prior year.