SECU's smaller sibling delays spinoff, citing need for branches
Local Government Credit Union will lose access to State Employee Credit Union's 274 branches after it breaks away in 2025. So Local Government is planning its own branch network.
Local Government Credit Union has pushed back its planned split from State Employees Credit Union until 2025 and will use the extra time to open its own branches.
The $4.1 billion-asset Local Government had previously announced it would break away from SECU by March 2024. It has been joined at the hip with the $50.8 billion-asset SECU, the second-largest credit union in the U.S., since 1981. Local Government uses the larger credit union's branch network, contact center and core.
The symbiotic setup stems from a North Carolina Supreme Court ruling that overturned the North Carolina Credit Union Commission's 1978 decision to allow SECU to serve local government employees. Both credit unions are based in Raleigh.
Local Government informed its members in February that the split was imminent. But the credit union quickly learned that it would need more time to find substitutes for the things that SECU provided for four decades.