In May, members of Wave Federal Credit Union and Anchor Federal Credit Credit Union approved a merger of the two Warwick-based institutions. The new credit union – doing business under the Wave name – will have about 9,000 members and $95 million in assets. No layoffs are expected. Paul Archambault, who will maintain his position as president and CEO of Wave, answered a few questions about the merger.
PBN: Can you briefly describe the process of Anchor and Wave agreeing to merge?
ARCHAMBAULT: We had collaborated on strategic planning, marketing and operational efforts over the past several years and realized we shared many of the same philosophies. We contacted them late last year about becoming strategic partners and things fell into place rather smoothly. Members also responded well with an overwhelming majority approving the merger.
PBN: How will the merging of Anchor and Wave be beneficial to members from both institutions?
ARCHAMBAULT: Members will have added convenience of additional branch locations, services and enhanced technology. We feel this is a win-win situation for members of both credit unions.
PBN: You wrote in your letter to members following their vote to merge about being able to compete more aggressively in the marketplace. Is that job of a credit union, competing aggressively?
ARCHAMBAULT: I think it is our responsibility to provide our members with the best products and services available at a competitive price. The consolidation will give us some economies of scale that will allow us to enhance our marketing efforts with the hope of gaining a competitive advantage over some of our fellow banks, mortgage companies and others offering financial services. We do collaborate with other credit unions but also compete with them for new members.
PBN: Do you foresee more credit union consolidations in Rhode Island in the future?
ARCHAMBAULT: Though the consolidation of Wave Federal and Anchor Federal credit unions was motivated as a strategic partnership for the future, the consolidation trend among smaller credit unions has been approximately one to two [per year] over the past several years. Credit unions remain very strong financially, especially in Rhode Island, but the burden of the smaller credit unions to meet increasing regulatory requirements, expanding electronic delivery channels to compete and layoffs/closing of sponsor companies force smaller credit unions into consolidation because they do not have the resources.
PBN: When will the merger be complete?
ARCHAMBAULT: We expect the merger to be completed by the end of October. The time-consuming part of the process is coordinating all our vendors to assure a smooth and seamless transition for our members.
Additional information about Wave Federal Credit Union is available at www.WaveFCU.org. Information about Anchor Federal Credit Union is available at www.AnchorFederal.org.
