B.R. credit union rejects merger with Metairie competitor

In the second reported rejection of a proposed credit union merger in as many days, members of the $96 million Main Street Financial Federal Credit Union of Baton Rouge on Wednesday turned its thumbs down on a consolidation with the $260 million Jefferson Financial Credit Union of Metairie, Credit Union Times reports. It remains unclear whether the Louisiana credit union members rejected the takeover offer for the same reason members of the $63 million Montana First Credit Union of Missoula voted down a merger deal with the $432 million Horizon Credit Union of Spokane Valley, Wash. But officials of the credit unions in all three states acknowledge publicly the existence of fear among some members that the mergers would mean losing a local financial provider and hometown credit union brand, which could lead to a lessening of personal service. The vote to kill the Louisiana merger, which has been in talking stages since last fall, was “overwhelming, by 1,000 votes,” Credit Union Times quotes a source “close to the negotiations” as saying. A spokeswoman for Main Street Financial declined to elaborate on what was behind the deal’s defeat, saying only “the planned merger was rejected by the members.” The Baton Rouge credit union has 15,300 members. John Lyon, Main Street Financial’s board chairman, says in a statement: “The Board of Directors is taking the merger vote under advisement, and further action is still being determined at this time.” Officials of Jefferson Financial did not respond to a request for comment. Read the full story here.