KeyPoint and Neighbors merger to take next step Thursday

With the board of directors for both KeyPoint Federal and Neighbors Federal credit unions having already approved a merger between the two—and the National Credit Union Administration having granted its preliminary approval—the move now rests with members of Keypoint Federal. A special meeting for members to cast votes will be held at 6:30 p.m. Thursday at the KeyPoint branch at 5423 South Sherwood Forest Blvd. “Once they vote and we tally them, then we’ll know if we’re moving forward,” says Neighbors Federal Chief Administrative Officer Dan Robichaux, who adds that members of Neighbors members will not vote on the merger. If approved, Robichaux says, the two credit unions will both go under the Neighbors Federal name and brand. “We haven’t determined dates or a timeline yet,” he says of merger specifics. “We’ll wait for the vote Thursday and go from there.” In a letter sent to members, KeyPoint Federal’s board of directors is recommending the proposed merger. The merger is the credit union’s best course of action “due to staffing issues, increasing financial regulations and complexities, and the economic downturn,” the letter says. Members who cannot attend the meeting Thursday should have also received a ballot by mail. In the letter accompanying the mail ballots, KeyPoint’s board of directors say the merger would align the bank with “a financially stronger institution” in Neighbors Federal, meaning members would benefit with extended call center hours and mobile banking, as well as more business services and branches. The letter also notes the board of directors has determined a merger dividend will not be paid. —Steve Sanoski