A Susquehanna Township-based credit union went across the country to find a partner to help it survive.
Postmark Credit Union, founded in Dauphin County in 1933, has applied to the Pennsylvania Department of Banking and Securities to be merged into Xceed Financial Credit Union, headquartered in El Segundo, Calif.
Postmark President and CEO David Frey said it’s too early to go into many details on the merger, but said the deal will help the small credit union survive in a changing financial services industry.
“Last year, in response to the fast-changing financial services landscape, the board of directors of Postmark Credit Union began searching for a strategic partner that would enable Postmark to better serve its members over the long term,” Frey said in an email statement. “We believe we have found the ideal partner in Xceed Financial Federal Credit Union, and Postmark’s board has authorized us to move forward with the necessary due diligence.”
Frey would not comment further on the merger, which is now up for approval by the state, the National Credit Union Administration and Postmark’s members.
Postmark offers membership to any employee of or retiree from the U.S. Postal Service’s Central Pennsylvania Performance Cluster, which includes all of the midstate as well as northeast Pennsylvania and the state’s northern tier.
Eligible members also includes family members ofthose groups, employees of any company that does business with the Postal Service in the Central Pennsylvania Performance Cluster and a handful of other companies in midstate.
Xceed Financial offers membership to employees of Xerox, Xerox subsidiaries and OfficeMax, as well as families of those employees. It also has a list of hundreds of additional companies whose employees and families are eligible for membership and about 10 communities across the country — none in Pennsylvania — whose residents are eligible for membership.
In March, it finalized a deal to merge with Menlo Park, Calif.-based Reach Federal Credit Union.
Xceed currently has more than $1 billion in assets and about 70,000 members. Postmark had about $28.7 million in assets at the end of 2015, Frey said, and about 2,300 members.