ALEC FCU Members OK Merger; Will Receive $104 Dividend

BATON ROUGE, La.—Members of the $6.4-million ALEC FCU have voted in favor of merging into the $894-million Campus FCU. 

With the approval, the two credit unions said they will become one legal entity effective July 1, operating under the Campus Federal Credit Union name.

ALEC FCU’s branch operations on Airline Highway will move to Campus Federal’s Siegen branch and business center. All ALEC FCU employees will be retained. 

As the CU Daily reported earlier ALEC FCU (which stands for Association of Louisiana Electric Cooperatives) told its members it needed to merge because Campus FCU offers a “broader range of products and services.” It cited checking accounts, CDs, debit and credit cards, mobile banking, online bill pay and more, along with more branches and ATMs, as benefits of the merger.

Net Worth Distribution

The credit union said ahead of the vote it would distribute some net worth if the deal were to be OK’d, saying each member will receive $104 (it has near 30% capital). It said $4 of the dividend will be used to increase the ALEC FCU share par value to CFCU’s $5 from ALEC FCU’s $1.

ALEC FCU had net income of $34,976 as of it last 5300.

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