On November 18, 2021 the Board of Directors of your credit union approved a proposition to merge with Buckeye State 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 virtually at https://www.cuballot.com/lakecomfcu-meeting on July 19, 2022, at 6:00 PM (ET) to address this proposition. Please note that you will need to enter your account number and the last four digits of your Social Security Number to join the meeting online.
Purpose of Meeting
The meeting has two purposes:
- To consider and act upon a proposal to merge our credit union with Buckeye State 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 BUCKEYE STATE 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:
Buckeye State Credit Union, chartered in 1933, offers a full range of financial products and services. Buckeye State has locations in northeast Ohio to serve you and has services you currently have, along with other benefits such as:
- Six locations
- Safety deposit box services at three locations
- Increased member service support staff ready to help with all your banking needs
- Apple Pay, Google Pay and Samsung Pay
- Free CarFax reports for auto loans
Certified Financial Counselors who provide free advice around credit, budgeting and financial planning
The Board of Directors of our credit union believes the merger should not include an adjustment in shares for the following reasons: our members will gain access to improved products and services upon completion of the merger. Additionally, the share value of Buckeye State Credit Union will not materially change upon successful completion of the merger.
The main office of the continuing credit union will be as follows:
- 197 East Thornton Street, Akron, OH 44311
The branch offices of the continuing credit union will be as follows:
- 4100 Munson Street NW, Canton, OH 44718
- 1010 West State Street, Alliance, OH 44601
- 15808 Chagrin Boulevard, Cleveland, OH 44120
- 1889 Brittain Road, Akron, OH 44310
- 1485 Lexington Avenue, Mansfield, OH 44907
- 255 South Prospect Avenue, Hartville, OH 44632
The branch of Lake Community Federal Credit Union located at 2500 West State Street, Alliance, OH 44632 will close at the time of merger.
NCUA Regulations require merging credit unions to disclose certain increases in compensation that any of the merging credit union’s officials or the five most highly compensated employees have received or will receive in connection with the merger. The following individuals have received or will receive such compensation:
|Name||Title||Description of Increase||Amount|
|Renee A. Rose||CEO||Severance Pay||$160,000.00|
|Darlene S. Baum||Vice President||Severance Pay||$85,963.86|
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 6:00 PM (ET) on July 19, 2022. 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.
Thomas C. Dickens
June 20, 2022