Mergers are becoming old hat for Wave Federal Credit Union. The Warwick-based institution has been through two in recent years, and it’s about to go through another. This time, Cottrell Federal Credit Union has agreed to merge into Wave. The combined credit union will have more than $110 million and about 8,100 members. Paul Archambault will maintain his position as president and CEO of Wave. He answered five questions about the merger.
PBN: This is Wave’s third merger in the last six years. Does the credit union continue to be open to similar opportunities? Are you actively seeking them?
ARCHAMBAULT: We are always looking for opportunities that can assist us in adding new resources, expanding our field of membership with potential new members and growth from existing members through enhancement of services. Wave will always leave the door open to potential credit union partners by listening to their needs and how we can complement their service philosophy.
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PBN: Is merging like this essential to Wave’s ability to compete? Why?
ARCHAMBAULT: I don’t think it is essential, but it can certainly help. Anytime you can grab a piece of the market share and have the potential to expand, it should help the business. Wave continues to be a full-service, well-capitalized financial institution.
PBN: Do you foresee other Rhode Island credit unions going this route in the future?
ARCHAMBAULT: The credit unions in Rhode Island remain very strong. The challenge, particularly for the smaller-sized credit unions are the resources required to meet some of the regulatory burdens and changing technology/electronic access to continue to remain successful.
PBN: How did this merger come about? Which credit union made that initial call? What was the process to getting it approved?
ARCHAMBAULT: Cottrell contacted us along with a few other credit unions. We were chosen because we shared similar philosophies and are committed to maintain their office in Westerly. After the principals of both credit unions agreed to move forward, the board of directors of both approved the merger. We then had to submit to NCUA (National Credit Union Administration) for approval. Finally, the members overwhelmingly approved the merger on March 9 with a vote 142-6 in favor. We anticipate completing the merger sometime in May.
PBN: What can members from both institutions expect as far as changes to their services? Do they need to throw away checkbooks, etc., that say Cottrell? Are account numbers changing?
ARCHAMBAULT: We expect the process to be seamless for the Cottrell members with minimal account number changes. They will be able to use their old checks until we replace them at no charge. The Cottrell members will enjoy new services like ATM/debit cards, online banking including bill-pay services, shared branching, mortgages and expanded deposit and loan products. Wave members will enjoy having an additional branch in Washington County where some of our current members reside.
