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Maryland companies announce planned merger

Maryland's State Employees Credit Union has announced plans to merge with the Anne Arundel County Employees FCU, also located in Maryland. The acquisition would increase SECU's net-worth, which currently stands at about $2.3 billion, by $81 million. SECU is Maryland's largest state-chartered credit union. SECU has conducted a number of Business acquisitions, but this would mark the credit union's first such deal in several years.

The companies have been discussing a possible merger since late 2011. The president and CEO of SECU explains that officials at the Anne Arundel County Employees FCU decided to search for a merger partner in response to its limited capacity for technology and inability to offer a large volume of products and services.

The president went on to explain that the combined company will offer a "complete turnkey banking experience" for its account-holders. He said that members would have access to services not currently available at Anne Arundel, such as electronic banking, mortgage programs and improved home equity lines of credit. While FECU has no current plans to pursue additional mergers, the FECU executive said that other credit unions in the area could "find themselves in the same boat as Anne Arundel."

FECU's president also mentioned that the credit union would continue with its ongoing promotion, known as "Take Banking a Different Direction," The promotion is aimed at convincing customers of traditional banks to switch their accounts to SECU, which he claims has lower fees than many banks in the region.

Before the merger can be finalized, the deal must be approved by members of the Anne Arundel Employees FCU, who are scheduled to meet at in April. If they give their approval, the transaction is expected to be completed during 2012's third quarter. Anne Arundel currently has 14,000 members at two different branches.

Source: Credit Union Times, "Maryland SECU Plans Merger With Anne Arundel Employees FCU," Jim Rubenstein, March 13, 2012

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