Credit unions serving employees at Owens Corning and Toledo Edison have agreed to merge into the area's third-largest such financial institution, with nearly 15,000 members and $96 million in assets.
Officials said the merger, which is subject to approval by members, will mean more services and branches.
But it will mean the loss of independence for a pair of credit unions formed more than 55 years ago. For the OC organization, it also will mean adoption of a name that will no longer include the company name.
The new entity will use the name of the Edison organization: Erie Shores Credit Union, Inc.
The name change wasn't an attempt by OC Federal Credit Union, which is the larger of the two organizations, to distance itself from problems at Owens Corning, which has been in Chapter 11 for nearly a year, said Ralph Kubacki, president.
“Erie Shores is a more generic name that is not tied to any one company,” he added.
That is fitting because the OC credit union includes ex-employers who no longer have ties to the company, as well as people from 55 other firms.
Besides, he said, OC credit union dropped the company name in favor of its initials a number of years ago.
Although founded by employees at the respective companies, neither credit union has official ties to the two firms.
OC members will now have access to Erie Shores' office in the Westgate area.
For Erie Shores members, the deal will provide three additional offices downtown, in Sylvania, and in Maumee. They also will get to use OC's Internet banking services.
“They are three times larger than we are,” said Monica Caro, senior vice president of Erie Shores. “We'll be a larger credit union and will be able to offer more services to our members.” New offices will be opened in Oregon and Perrysburg in the next three years, according to a letter sent to Erie Shores members.
Officials said they expect the merger will save costs but don't plan to eliminate any of their 52 employees.
The new credit union will be Toledo's third largest behind Toledo Area Catholic Credit Union and Sun Federal Credit Union, Mr. Kubacki said.
The OC credit union, founded in 1945, has 10,142 members and $72 million in assets. Erie Shores, as currently constituted, has 4,713 members and $24 million in assets. It was founded in 1944.
The merged credit union will be operated under Erie Shores' state charter, meaning that it will be supervised by the Ohio Commerce Department's division of financial institutions rather than the National Credit Union Administration as OC is now.
Voting on the merger will be completed by Sept. 19, officials said.
First Published August 7, 2001, 7:55 p.m.