Merger to Preserve Vital CDCU Services in Four Low-income Counties
(June 1, 2010 – Alexandria, VA) The National Credit Union Administration (NCUA) has given the final approval to merge the First Delta FCU with Shreveport Federal CU. The First Delta FCU was conserved by NCUA on Oct 23, 2009. The conservatorship board and management have worked for several months to restore First Delta FCU to financial stability and now feel confident the members can be assured of on-going services by this action. First Delta leaders worked diligently through the years to bring homeownership initiatives, small business services, and other lifeline financial services to the Delta Region of Northern Mississippi.
Clifford N. Rosenthal, President/CEO of the Federation, which has assisted First Delta FCU over the years, commented on the recent merger. “While we regret the loss of the First Delta FCU’s independent status, we are truly delighted that services will be preserved and even expanded by Shreveport FCU, one of our outstanding CDCUs in the Southeast, led by Helen Godfrey-Smith, a nationally-recognized CDCU and credit union leader.”
Mrs. Godfrey-Smith, CEO of Shreveport FCU and a board member of the Federation, provided insight into the recent merger. “This merger is clearly a great match for us as well as for First Delta,” she explained. “The missions of both credit unions are near-perfect reflections of each other -- to provide the highest level of personal financial services to underbanked and underserved communities, while encouraging and increasing the knowledge of thrift, savings, and the wise use of credit by individuals and small businesses in the targeted communities.”
“We view this action as a business partnership with phenomenal possibilities for everyone concerned,” Mrs. Godfrey-Smith added. “While the decision to merge was precipitated by First Delta’s very unfortunate circumstances, we believe this action to preserve credit union services to the Tri-Delta counties will be seen as one of the great decisions of this era.”
“From its origins as Quitman County Federal Credit Union in the early 1980s, First Delta FCU has played a distinguished and important role in community development and the credit union movement in general,” Rosenthal explained. “People have been inspired by First Delta’s tireless and innovative work to bring basic financial services to one of the most economically disadvantaged communities in the United States, and their extraordinary youth program in particular, has year after year, demonstrated the community impact of the credit union on the Federation’s national stage. In addition, Robert Jackson, founder and former Treasurer of the credit union, has played an invaluable role as a national advocate for CDCUs.”
Jackson, one of the original organizers of the First Delta FCU and a current Mississippi State Senator, commented on the credit union merger. “I am especially pleased that the merger with Shreveport FCU was approved, as our community will get the best of both worlds; a credit union with combined assets of $85 million, a continued alignment with our core principles of service to our members, and the added value of a broad range of cutting-edge products and services from Shreveport FCU,” he said.
In addition, the sponsor organization of the First Delta FCU, Quitman County Development Organization (where Jackson is CEO), remains committed to working with Shreveport FCU to continue its long tradition of community development and empowerment for the people in the Delta and beyond.
Under the new merger, the credit union’s footprint in this new region will be identified as the “Delta Division of Shreveport FCU.” Shreveport FCU is an $85 million Credit Union with 7 branches, serving over 20,000 members; chartered in 1956.
© 2010 National Federation of Community Development Credit Unions.