Merger Information and FAQs

Merger FAQ for Alabama Rural Electric Credit Union (ARECU) Members

DOWNLOAD THE MERGER KIT HERE

VIEW THE SYSTEM UPGRADE SCHEDULE HERE

Why did ARECU pursue a merger with Alabama ONE Credit Union?
We simply want to provide members with the best value while ensuring we are continuing to grow and thrive.  Our partnership with Alabama ONE leverages a combined financial strength of $660 million in assets, $200 million in available lending capacity, and $70 million in capital reserves to expand the services, products, branch locations, and technology offered to our members, cooperatives, and businesses throughout the state of Alabama Living.

Jeff Hodges, Chairman of Alabama Rural Electric Credit Union, said of the merger, “In our discussions with the Alabama ONE TEAM, we immediately saw the benefits and opportunities to offer a full-scale and modern banking experience to our members. Through the partnership with Alabama ONE we saw an opportunity, at the right time, to provide our members throughout Alabama an elevated level of service and convenience unachievable with our current technology. And more importantly, Alabama ONE recognized and embraced the value of our credit union – such that we will continue to operate as Alabama Rural Electric Credit Union, a division of Alabama ONE.”

Loo Whitfield, Chairperson of Alabama ONE, also said of the partnership, “Alabama ONE is extremely pleased to welcome Alabama Rural Electric Credit Union to the Alabama ONE family!  Alabama ONE has made substantial investments over the last two years in upgrading its digital banking technology and member experience.  This partnership with Alabama Rural Electric Credit Union is immediate evidence these investments are paying off.  While enjoying a state-of-the art mobile banking experience and wide array of service offerings, Alabama Rural Electric members will also see our earnest commitment to promoting financial wellness among our members and youth through this 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.

Were both credit unions financially strong?
Yes, both credit unions operated independently and were well capitalized. Members can access the annual call reports of both ARECU and Alabama ONE by visiting https://mapping.NCUA.gov/ResearchCreditUnion.aspx.

How are members benefiting?
The merger provides the resources to better serve your financial needs through added branched and ATMs, robust online and mobile technologies, new products and services, and highly competitive rates.  These new improved services will be available to ARECU members following MERGE WEEK.

There was a special dividend mentioned in the merger packet sent by mail. What does this mean for each member?
As a part of the merger, all ARECU members in good standing as of September 30, 2019 will be paid a special dividend.  This special dividend will be based on the member’s combined balance of loans and deposits as of September 30, 2019.  Each member will receive a minimum of $10 with the potential for much higher based on your investment in ARECU.  Special dividends will be paid within 30 days after final regulatory approval is received (by July 2020).

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.

Will I still receive personalized service?
One reason we pursued this merger is to provide better member service.  You will continue to receive the same personalized service you do today. The phone number to contact us will not change. You may continue to reach us at (334) 215 - RECU (7328) or toll-free (800) 381 - RECU (7328).

Will the merger affect membership eligibility?
Yes, in a great way! Alabama ONE and ARECU now have a field of membership that spans across 57 counties throughout Alabama with an opportunity to serve over 500,000 households and 100,000 businesses within this merged field of membership which includes the employees and trustees of Alabama rural electric cooperatives, the family of Alabama rural electric cooperative employees, and the members of Alabama rural electric cooperatives. Our electric cooperative employees and member-customers across Alabama now have 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.


Will the ARECU branch in Montgomery remain open?
Yes. The branch will remain open and operating hours will remain the same.


Will any of the employees of ARECU be laid off as a result of the merger?
No. The employees of ARECU will continue employment with ARECU and you will continue to receive the same personalized service you do today.

Can I use Alabama ONE branches now?
Not initially. We are in the process of integrating the operations of the two credit unions. Please reference the MERGE WEEK SCHEDULE and MERGER KIT for more information on the integration of our operations.

What about ATMs?
We are in the process of integrating the operations of Alabama ONE and ARECU. Please reference the MERGE WEEK SCHEDULE and our MERGER KIT for more information.

Will my account or routing number change?
Your account number will not change. We are unsure, at this time, if changes to your routing numbers will occur. If there are any necessary changes, we will provide advanced notice of any change schedule to occur.  It is our goal to minimize any impact to the account and routing numbers of our members.


Will my automatic bill payments, direct deposits, and automatic transfers change?
Changes to direct deposits may be necessary. We will contact members individually to make necessary changes. If a team member does not contact you, changes are not necessary. Your scheduled bill payments through Bill Pay will not change and will process as scheduled. Your automatic transfers currently made through Bill Pay will need to be set up in the new online banking system.

What about my recurring transactions?
We are unsure, at this time, if changes to your recurring transactions will be required.  If there are any necessary changes, we will provide advanced notice of any change schedule to occur.  It is our goal to minimize any impact to the accounts of our members.

Will my online banking change?
Your username and password to access Online Banking (Home Branch) will not change. Your Online Banking access will be temporarily unavailable during our conversion- please reference the MERGE WEEK SCHEDULE for more information.

Will my debit card still work?
Your debit card will be reissued. A new card will be mailed to you on or before June 26, 2020. You will need to activate your new debit card prior to July 2, 2020. You will be able to set your PIN during activation. You may begin using your new card on July 2, 2020. Your old debit card will not work after July 1, 2020. Please reference the MERGE WEEK SCHEDULE for more information on the transition of your debit card.

Will the terms of my existing ARECU accounts change?
Loans - Your existing loan contract will remain in effect until the loan is paid off.

Share Certificates - The terms of your existing share certificate will remain in effect until the maturity date.

Share, Checking, Club, and Money Market Accounts - Rates on these accounts will remain the same. These rates are subject to change at a later date based on market conditions.

Is the name of ARECU changing?
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.

Will I still be able to use another credit union for shared branching?
Yes.  Our members may still access our shared branching services at other credit unions.

Will Alabama ONE still offer personal loans such as the $1000 Power Surge loan that does not require a credit check for members?                                The Power Surge loan or a similar type loan will continue to be available for our members.  As with any of our loan products, loan qualification criteria is subject to change.

Will our checking account still have overdraft coverage?                          Standard overdraft coverage for checking will still be available. Optional debit card and ATM overdraft coverage will also be available to members as well.  As with any of our overdraft protection services,, overdraft qualification criteria is subject to change.

What about checks?                                                                                            Your unused check stock may still be used after the merger until further notice.

What happens to the ARECU Board of Directors?
Alabama ONE has honored our request to have one (1) ARECU delegate on the Alabama ONE Board of Directors, as well as one (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.

What is the merger process and timeline?
The Alabama Credit Union Administration (ACUA) and National Credit Union Administration (NCUA) have approved our merger plans. We received the approval vote from our membership on April 1, 2020. Our operating systems will be merged June 29 – July 3, 2020. Please reference our MERGER KIT and MERGE WEEK SCHEDULE for more information on the system conversion.

What if I have additional questions?
We are here to answer your questions. Please do not hesitate to either credit union if you have any questions about this merger.  You can reach us by contacting:

Alabama Rural Electric Credit Union
Phone: (334) 215 - RECU (7328) or toll-free (800) 381 - RECU (7328)
Email: arecumember.service@arecu.net
In Person: 340 TechnaCenter Drive Montgomery, Alabama 36117


Alabama ONE 
Phone: (800) - 225 - 0110
Email: marketing@alabamaone.org
In Person: 1215 Veterans Memorial Parkway Tuscaloosa, Alabama 35404