ARECU has been presented with an opportunity to partner and merge with AlabamaONE Credit Union. After considerable internal discussion among the Board of Directors, we believe this opportunity is in the best interest of our membership. The mutual benefits and opportunities of this partnership are substantial. Together, AlabamaONE and ARECU will have a field of membership encompassing 57 counties throughout Alabama with an opportunity to serve over 500,000 households and 100,000 businesses within this merged field of membership.
Electric cooperative employees and member-customers across Alabama will have immediate access to the latest online/mobile banking technology, affordable auto loan and mortgage products, aggressive rewards-driven credit cards, comprehensive insurance offerings, retirement/wealth advisory solutions, and financial wellness education.
Electric Cooperatives and small businesses across this field of membership will enjoy modern low-fee business services, digitally compatible merchant services, employee benefits offerings, and cybersecurity technology solutions through the merger.
If you are one of our members, and we’re hoping you are or will be, we know you likely have specific questions about what this means for you. Throughout this process we want to foster and encourage open and honest discussions between you and our team. We have already had great conversation with members across the state and hope to continue having these interactions while you consider our proposition.
To help you as you consider, we have included the answers to our most frequently asked questions here. We have also dedicated a page of our website to sharing information about the proposed partnership.
Who is Alabama ONE?
Alabama ONE has over $630 million in assets and $70 million in capital. Alabama ONE is a full-service financial institution, serving over 60,000 members in Tuscaloosa, Pickens, Mobile, Jefferson, and 18 other counties, including Fayette, Lamar, Walker, Bibb, Hale, Greene, Washington, Baldwin, Monroe, Escambia, Choctaw, Clarke, Wilcox, Marengo, Sumter, Morgan, Montgomery, and Shelby.
Chartered in 1951, it is a member-owned organization with each member sharing equally in that ownership.
Will anything happen to the ARECU employees? Will the ARECU branch in Montgomery remain open?
The ARECU Board, ARECU management, and Alabama ONE kept the ARECU team members in the forefront of their minds during this process and continue to do so in every decision. All team members will retain their position, current compensation, and will be provided team benefits and continue working from the ARECU office in Montgomery. The office will keep its current hours, operating Monday through Friday, 7:45 a.m. to 4:15 p.m.
Will the name of ARECU change?
No. We will continue operating as Alabama Rural Electric Credit Union, a division of Alabama ONE, thus preserving the heritage of our name and brand identity.
How will members benefit?
A merger will provide the resources to better serve your financial needs through added branches and ATMs, robust online and mobile technologies, new products and services, and highly competitive rates. While nothing will change until member approval is received, this partnership will mean we can better anticipate and meet all of your financial needs.
Will my accounts be insured?
As a member of ARECU, your deposits are covered by Excess Share Insurance (ESI) for up to an additional $250,000 over the $250,000 insured by the NCUA.
If you have excess share insurance on your deposits, this insurance will be continued on your accounts.
What happens to the ARECU Board of Directors?
Alabama ONE has honored our request to have (1) ARECU delegate on the Alabama ONE Board of Directors, as well as (1) ARECU delegate on the Supervisory Committee of Alabama ONE. Our board will continue to meet regularly as a committee to guide new opportunities in this new partnership. All members eligible to vote have been mailed a packet summarizing the proposed partnership as well as a ballot. Please note that the proposed merger must have the approval of the majority of members who vote.
A special meeting will be held at 10 a.m. April 1, 2020 at 340 Technacenter Drive, Montgomery, AL 36117. Members may vote by ballot at the special meeting or by mail. All ballots must have been received by the Board of Directors at the time of the special meeting to be counted. Please reference the mailed merger packet for further voting instructions.
We hope you are just as excited about this opportunity as we are! Again, please contact us by phone (334-215-7328), by email or in person to talk about any questions, comments, or concerns you may have. Thank you for being the best members and for your continued support!