Chicago- and Newark-based credit unions announce merger (01/28/01)

Chicago- and Newark-based credit unions announce merger

by Walter Tun

NEWARK, N.J. - During a special meeting on December 10, 2000, members of the Newark-based Selfreliance UA Federal Credit Union voted in favor of merging with Chicago-based Selfreliance Ukrainian Federal Credit Union.

Votes for the merger were cast in person and by mail. Results indicated that 385 members voted for the merger and 17 against. Selfreliance UA Federal Credit Union and Selfreliance Ukrainian Federal Credit Union decided to merge in order to enhance financial services for their members. Prior to the merger, both institutions were successful growth-oriented financial institutions serving the Ukrainian community in the United States.

The merger was finalized on December 19, 2000. As a result, the institution now serves over 19,000 members and holds over $360 million in assets, placing it among the top 3 percent of all credit unions in the United States. The newly merged credit union has nine locations in three states: Illinois, Indiana and New Jersey.

Selfreliance UA Federal Credit Union President Ihor Laszok, who assumes the duties of executive vice-president of the newly merged entity, indicated that the primary reason for the merger was that it will "afford us the opportunity to deliver more and better financial services to our members while enhancing assistance to the Ukrainian community."

The merger will give Selfreliance UA's membership access to a wide variety of financial services, including two VISA Platinum cards, many choices in zero-point residential and commercial mortgages, zero-balance interest-bearing share draft accounts, debit cards, business loans, home equity loans (now under prime) and enhanced support for community organizations.

"The merger presents a unique opportunity for two Ukrainian organizations to cooperate for the mutual benefit of their members and for the benefit of the Ukrainian community," stated Mr. Laszok.

Selfreliance Ukrainian Federal Credit Union Chairman of the Board Michael R. Kos, who becomes chairman of the board of the merged credit union, stated that the merger will realize the dream of the founders of the two credit unions to be able to provide exceptional financial services to all their members. "The synergy of our merger will help in accomplishing this objective," said Mr. Kos.

Selfreliance Ukrainian Federal Credit Union CEO Bohdan Watral, who is now president of the merged credit union, stated: "The merger will allow us to utilize economies of scale to increase the efficiency of our operation as well as the quality of our financial services. It will allow more Ukrainian American individuals, organizations and businesses to benefit from our full line of financial services. The merger allows us to increase our outreach to financially underserved members with life-line services."

"The future holds much promise for our members, our credit union and the Ukrainian community," added Mr. Watral. "Last year, both credit unions gave over $500,000 in direct support to Ukrainian community organizations and causes. This year our joint support will surpass last year's amount."

He added that: "We have reached out beyond the Ukrainian community of Illinois for the benefit of our Ukrainian community. We work closely with Illinois Gov. George Ryan, Illinois Treasurer Judy Baar Topinka, State Sen. Walter Dudycz, U.S. Sen. Peter Fitzgerald, U.S. Congressmen Luis Gutierrez, Danny Davis, Henry Hyde, Rod Blagojevich, the National Credit Union Administration, and other government officials and organizations to help assist the Ukrainian community here as well as abroad. Without a close working relationship between our credit union and our government, this merger would not have been possible."

Mr. Watral explained: "Future plans for the credit union include expansion of services and enhanced walk-in and home-based accessibility. We will continue to be at the forefront of financial services for the benefit of our members and of the Ukrainian community. Our goal is to help our members achieve their financial dreams in a professional and efficient manner."

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