Local Credit Union Announces Major Merger in New Orleans: M&A Report
Jefferson Financial Federal Credit Union and Keesler Federal Credit Union have announced a major merger, reflecting a broader trend in the credit union industry. After Keesler, based in Biloxi, acquires Jefferson, located in Metairie, they will operate a total of 55 branch locations in the Gulf South and the United Kingdom, with 21 in Louisiana alone. This merger will see Keesler absorb Jefferson’s assets of $715 million, bringing their combined total to nearly $5 billion, with over 900 employees.
Mark Rosa, President & CEO of Jefferson, emphasized that both institutions share a strong service culture. Andrew Swoger, President & CEO of Keesler, added that the merger is a perfect fit that will strengthen both organizations and enhance member accessibility and services.
The deal still requires approval from the National Credit Union Administration and Jefferson’s members. Officials expect full integration of the businesses to occur by late 2025 or early 2026.
Credit unions, as not-for-profit financial institutions, have been consolidating rapidly in recent years to benefit from economies of scale, enhance service offerings, upgrade technology for digital strategies, improve the member experience, and attract younger consumers through digital channels.
In addition to the Jefferson-Keesler merger, two other Louisiana credit union transactions were announced in November. New Orleans Firemen’s Federal Credit Union will acquire Total Community Action Federal Credit Union to bolster its financial position. OnPath Federal Credit Union, formerly ASI Federal Credit Union, has also agreed to acquire South Louisiana Highway Federal Credit Union to expand its operations.
This consolidation trend among credit unions has been on the rise, with 145 mergers approved nationally last year and 121 mergers approved through the first nine months of 2024. Louisiana-based credit unions have also seen an increase in mergers, with 6 approved through September this year.
As credit unions continue to merge and grow, it will be interesting to see how these changes impact their members and the overall financial landscape.
