Wichita-based credit union takes over operations of Lawrence’s Jayhawk Federal Credit Union
A Wichita-based credit union that serves the likes of Learjet, Pizza Hut and other large corporations has taken over a Lawrence credit union that was the subject of customer concerns last fall.
Mid American Credit Union has taken over the operations of Jayhawk Federal Credit Union, which has served as the longtime credit union for the Lawrence Paper Company. The name of Jayhawk Federal Credit Union was changed to Mid American on April 1.
Jayhawk Federal Credit union had about 1,000 members and about $2 million in assets, but in October several customers expressed concern about being unable to access their accounts because the credit union’s lone Lawrence office was unexpectedly closed for an extended period.
Mid American has 30,000 members and about $225 million in assets, said Jim Holt, president and CEO of the Wichita-based credit union. He said Mid American already has expanded the hours of the Lawrence branch to 8:30 a.m. to 4:30 p.m. on weekdays. The larger size of the organization also means the Lawrence branch will be able to offer mortgage lending and small business lending to its members, which is something Jayhawk Federal Credit Union did not offer, Holt said.
Holt said none of the problems Jayhawk Federal Credit Union had in October resulted in any members losing deposits, and he said there are no financial concerns with the Lawrence branch.
Holt said Mid American was interested in taking over the Lawrence location because the membership of Jayhawk Federal Credit Union fit well with Mid American’s membership.
“Our sweet spot really is serving blue collar workers,” Holt said.
He said the company will continue to operate out of office space at 2901 Lakeview Road, which is space that is connected to the Lawrence Paper Company. Holt said the credit union may look for an additional Lawrence location in the future, but he said the company doesn’t plan to advertise its services to the broader Lawrence population. Instead, the credit union will seek to form partnerships with businesses interested in offering credit union membership to their employees.
As part of the transaction, which technically was considered a merger by regulators, Jayhawk’s board of directors was dissolved, and members of Jayhawk Federal Credit Union were given voting rights to select the board of Mid American, Holt said.