Federal Life Employees' Credit Union
On August 18, 2022 the Board of Directors of your credit union approved a proposition to merge with Northwest Community Credit Union and to convert from federal share (deposit) insurance to private insurance. You are encouraged to attend a special meeting of our credit union at 3750 W. Deerfield Road, Riverwoods, Illinois 60015 on May 31, 2023, at 9:30 AM (CT) to address this proposition.
Purpose of Meeting:
The Meeting has two purposes:
- To consider and act upon a proposal to merge our credit union with Northwest Community Credit Union, the continuing credit union.
- To approve the action of the Board of Directors of our credit union in authorizing the officers of the credit union, subject to member approval, to carry out the proposed merger.
If this merger is approved, our credit union will transfer all its assets and liabilities to the continuing credit union. As a member of our credit union, you will become a member of the continuing credit union. On the effective date of the merger, you will receive shares in the continuing credit union for the shares you own now in our credit union.
Currently, your accounts have share insurance provided by the National Credit Union Administration, an agency of the federal government. The basic federal coverage is up to $250,000, but accounts may be structured in different ways, such as joint accounts, payable-on-death accounts, or IRA accounts, to achieve federal coverage of much more than $250,000. If the merger is approved, your federal insurance will terminate on the effective date of the merger. Instead, your accounts in the credit union will be insured up to $250,000 by American Mutual Share Insurance Corporation (American Share), a corporation chartered by the State of Ohio. The federal insurance provided by the National Credit Union Administration is backed by the full faith and credit of the United States government. The private insurance you will receive from American Share, however, is not guaranteed by the federal or any state or local government.
|IF THIS MERGER IS APPROVED, AND THE NORTHWEST COMMUNITY CREDIT UNION FAILS, THE FEDERAL GOVERNMENT DOES NOT GUARANTEE YOU WILL GET YOUR MONEY BACK.|
Other Information Related to the Proposed Merger
The directors of the participating credit unions carefully analyzed the assets and liabilities of the participating credit unions and appraised each credit union’s share values. The appraisal of the share values appears on the attached individual and consolidated financial statements of the participating credit unions.
The directors of the participating credit unions have concluded that the proposed merger is desirable for the following reasons:
Celebrating over 84 years, Northwest Community Credit Union has a full range of products and services, including those that you currently enjoy, along with other benefits such as:
- Expanded Hours of Operation, Including Saturdays
- Access to CO-OP's 5,300+ Shared Branch Locations and 300,000+ Surcharge-free ATMs Nationwide via the CULIANCE Network
- Mobile Banking, Including Remote Deposit Capture and Bill Pay
- Free Checking Accounts with Instant Issue VISA Debit Cards
- VISA Credit Cards and Gift Cards
- First Mortgage Loans, Home Equity Lines of Credit and Investment Property Loans
- Roth and Traditional Individual Retirement Accounts (IRAs)
The Board of Directors of our credit union believes the merger should include an adjustment in shares because of our credit union’s high net capital ratio; and therefore, if the merger is approved, each member will receive a one-time dividend equal to 1.75% of their aggregate share balances as of January 31, 2023, posted at the time of merger.
The main office of the continuing credit union will be as follows:
- 8930 Waukegan Road, Suite 100, Morton Grove, IL 60053
The branch offices of the continuing credit union will be as follows:
- 3835 West 103rd Street, Chicago, IL 60655 - Saint Xavier University
The Saint Xavier University (SXU) branch is non-transactional and access is limited to SXU students or staff members. Deposits and withdrawals are not accepted, and all member-related services inquires are transferred to the main office. Federal Life Employees’ Credit Union, located at 3750 W. Deerfield Road, Riverwoods, IL 60015, will close at the time of merger.
The merger must have the approval of a majority of members who vote on the proposal, provided at least 20 percent of the total membership participates in the voting.
Enclosed with this Notice of Special Meeting is a Ballot for Merger Proposal and Conversion to Nonfederally-insured Status. If you cannot attend the meeting, please complete the ballot and return it to E Space Communications Inc., PO Box 3156, Dublin, OH 43016 by no later than 9:30 AM (CT) on May 31, 2023. To be counted, your ballot must reach E Space Communications Inc. by the date and time announced for the meeting.
By order of the Board of Directors.
Chairman of the Board of Directors
May 2, 2023