Effective today, the St. Patrick Federal Credit Union in Carleton is closed and its operations will be merged with the Monroe County Community Credit Union (MCCCU).
Mike Newman, president and chief executive officer for MCCCU, confirmed this morning that the longtime small credit union across from St. Patrick Catholic Church and Grade School is closing under a joint operating agreement. The accord has been in the works for the past month with St. Patrick and the National Credit Union Administration.
"Our people are merging the operations under this management agreement" with the board of directors, Mr. Newman told The Evening News Friday. "Due to economic conditions beyond their control, they found it very difficult to provide services to their members and decided they would be better off merging with another partner."
St. Patrick Credit Union held its last day of operations Friday. The credit union has been in business for more than 60 years and has about 700 members, some of whom are members of St. Patrick's parish, Mr. Newman said. MCCCU has operated for 58 years and has a membership of more than 31,000 people, he said.
"We are a much larger community-based credit union and can offer more personal services than they can," the president said. "Starting Monday, they will become full-fledged members and be able to use any of the five locations we have."
One Carleton woman who wished to remain anonymous said she withdrew her money from the credit union Thursday after hearing rumors about the business folding. She said she was second in line and about 30 people were waiting behind her to withdraw from their accounts. She said many of the people were angry about not being notified that the credit union was shutting its doors for good.
Mr. Newman said the reason members were not notified is because MCCCU was waiting for state approval of the joint operating agreement. He said that approval came Friday.
"We were waiting for approval from the state regulator of the pending merger," he explained. "Had we gotten that, they would have been notified much sooner."
He stressed that all deposits of members are insured by the federal government up to $250,000. He said the members' savings were insured and "never in jeopardy of losing their accounts." He called the closing a merger, not a liquidation or takeover.
"We went into this agreement voluntarily to serve the members of St. Patrick," he said. "We're much larger and able to serve them."
The Carleton woman said she was told by someone at the credit union that there was a "criminal investigation" under way. Mr. Newman declined to comment on the matter.
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