CHAMPAIGN — Community Healthcare Credit Union plans to merge with Community Plus Federal Credit Union on Oct. 1, pending a vote Monday by Community Healthcare's members.
The proposed merger came about because Community Healthcare's board felt "the credit union needed to explore options to provide more services to members," said Community Healthcare Chairman John Hansen Jr.
The merger with Community Plus would provide a broader array of financial services, including mobile banking, first mortgages, money market accounts and an online personal financial manager.
In a letter to members, Hansen stated, "While our credit union is financially sound, our asset base and staff is small, and our resources are limited."
Community Healthcare, with an office at 1112 W. University Ave., U, has about $4.1 million in assets and more than 1,000 members.
Community Plus, with offices at 1001 W. Bloomington Road, C, and 526 E. Champaign Ave., Rantoul, has more than $15 million in assets and 3,400 members.
If the merger is approved, Community Healthcare's office on University Avenue in Urbana would close, and members would be served primarily from the Community Plus office in Champaign, Hansen said.
Plans call for Community Healthcare's two full-time employees, Katie Johnston and Linda McCoy, to work at the Champaign office, he said.
It's also expected that two representatives from Community Healthcare will be added to the Community Plus board, Hansen said.
"We see this as the joining together of credit unions who each have a history of providing service to their members," said Community Plus President Michael Daugherty.
Community Healthcare has been around for more than 50 years, and Community Plus traces its roots back to 1943. Originally tied to Chanute Air Force Base, Community Plus has been a community-based credit union since the early 1980s.
Community Healthcare serves employees of Christie Clinic, Provena Covenant Medical Center, Prairie Center, Developmental Services Center and other organizations.
Daugherty said members of both credit unions will be served better as a result of economies of scale and efficiencies achieved through the merger.
"We'll still be a small credit union, but stronger than the two of us separately," he said.
Hansen said Community Healthcare had discussed a merger with another credit union on two occasions, but those talks never came to fruition.
The talks with Community Plus "seemed like a good fit almost from the start," hen said.
Both credit unions are federally insured by the National Credit Union Administration. The proposed merger has already been approved by both the NCUA and the Credit Union Section of the state's Division of Financial Institutions, Daugherty said.