CO-OP FINANCIAL SERVICES AND CREDIT UNION SERVICE CORPORATION
FINALIZE AGREEMENT TO COMBINE SHARED BRANCH OPERATIONS
Nation's Leading CUSO Joins with Largest Shared Branching Organization to
Establish Unified Shared Branching for Credit Unions
FOR IMMEDIATE RELEASE
Contact:
Samantha Smyth, CO-OP Financial Services, (800) 782-9042, ext. 2570
samantha.smyth@co-opfs.org
Craig Beach, Credit Union Service Corporation, (866) 812-2872, ext. 1322
craig.beach@cusc.net
ONTARIO, Calif. and ATLANTA, Ga. (July 10, 2007) – CO-OP Financial Services in
Ontario, Calif., and Credit Union Service Corporation (CUSC) in Duluth, Ga., have
completed an agreement to combine operations, creating a new organization that
represents 80 percent of the country's shared branching participants. Under terms of the
business combination, CO-OP has purchased a 51 percent interest in CUSC, which
continues to manage and market its branch outlets across the U.S. Additionally, CO-OP
retains 100 percent ownership of its shared branching operation (Service Centers
Corporation) in Southfield, Mich., which will also be managed by CUSC.
The new shared branching entity's 1,100 participant credit unions will be able to facilitate
deposits, withdrawals, loan payments and other transactions within the expanded
nationwide shared branch network that now includes 1,656 branches spread across 40
states, representing two-thirds of shared branching locations worldwide.
"CUSC and CO-OP share the common goal of providing our participant credit unions
with delivery channels that meet their members' needs," said Carroll Beach, CUSC
president/CEO. "By combining forces, we're giving credit unions even more economies
of scale to provide convenience for their members. We're enthusiastic about this
opportunity to enhance our shared branching efforts and create the most relevant tools for
our clients, such as our ground-breaking NGN switch."
According to Kris Mecham, CUSC Chairman of the Board, "The business combination
will establish a synergy within the credit union movement unheralded by other networks.
By combining the state-level delivery mechanism of CUSC with the EFT acumen of COOP FS, credit unions are sure to benefit."
Beach will become president/COO of the new organization, reporting to the CUSC board
and Stan Hollen, CO-OP Financial Services president/CEO.
"I'm looking forward to working with Carroll, who's been an influential presence in the
credit union industry for more than 30 years," said Hollen. "This is also a rare
opportunity to blend two premier credit union-owned businesses to create an even
stronger entity. With CO-OP based in California and Michigan, and CUSC in Georgia,
this is a smart fit geographically, strategically and technologically."
According to Dave Maus, CO-OP Financial Services Chairman of the Board, shared
branching epitomizes the cooperative nature of credit unions. "Credit unions benefit by
working together and shared branching symbolizes this cooperative spirit in the financial
services arena," said Maus. "This collaboration between CO-OP and CUSC makes credit
unions even more accessible on a national level, giving our members the tools they need
to compete with banks."
About CUSC
Credit Union Service Corporation is the credit union movement's largest shared
branching network representing 54% of all national locations, 59% of credit unions
participating in shared branching and 56% of all shared branching transactions.
Established in 1987, the CUSC network is designed to offer credit union members
convenient access to their accounts by making available numerous locations and
extended hours. Through groundbreaking technology, CUSC's Next Generation Network
offers credit unions lower cost, improved transaction functionality and greater
information capacity, making it possible for more credit unions to offer shared branching
to their members.
About CO-OP Financial Services
Established in 1981 and located in Ontario, Calif., CO-OP Financial Services (formerly
CO-OP Network) is the nation's largest credit union service organization. Wholly-owned
by its credit union shareholders, CO-OP provides volume discounts on products and
services that include ATM network access, ATM processing, debit/card services and
shared branching. With nearly 2,000 credit union members, 25,000 surcharge-free ATMs
(including 6,000 deposit-taking), 120 million-plus monthly transactions and 24 million
cardholders, CO-OP Financial Services is the No. 1 credit union EFT network and
processor in the U.S. financial services industry. CO-OP Financial Services' membership
has access to 800,000 ATMs worldwide through links to NYCE, STAR, Cirrus,
Pulse and Plus.