MADISON, Wis. (12/22/11)--As the year ends and a new one begins, several credit unions have mergers in the works, with some timed as a transition as long-time credit union leaders retire.
In Kalamazoo, Mich., the $85 million asset Allegis CU is completing a merger with St. Joseph, Mich.-based $316 million asset Honor CU, just as Allegis CEO John Sink retires after 12 years at the helm and 40 years in the financial services industry, said the Michigan Credit Union League (Michigan Monitor
Allegis' members voted Dec. 8 to approve the merger, which awaits approval from the National Credit Union Administration (NCUA). The merger is expected to be complete in early 2012.
Sink decided to retire after visiting his home in Florida, saying he is ready to relax. Honor CU President Scott McFarland said Sink will do some consulting work as Honor evaluates other expansion opportunities.
Other mergers in the works:
- The $370 million asset Kellogg Community FCU, Battle Creek, Mich., will merge with the $9 million asset St. Joseph Valley, Three Rivers, Mich. Kellogg will be the surviving credit union.
- Winthrop (Maine) FCU, a $55.8 million asset credit union, will merge into $561 million asset Webster First FCU, Worcester, Mass. The merger will become final Dec. 31. NCUA approved the merger Oct. 26 and members approved the deal on Dec. 14 (telegram.com and Banker & Tradesman Dec. 15) .
- Missoula, Mont.- based Montana First CU members were scheduled to vote this week on a merger with Spokane, Wash.-based Horizon CU (KPAX.com Dec. 12). Montana First , which has two Missoula branches, would keep its name and employees, and a board member would join the Horizon CU board. If approved, the merger would be complete in early to mid-spring. Montana First has $66 million in assets, while Horizon has $421 million in assets.
- Bluestone FCU, Eagan, Minn., with assets of about $21 million, merged Dec. 1 into Associated Healthcare CU (AHCU), a $55 million asset credit union in St. Paul, Minn. Jerry Ziegler is president/EO of the merged credit union, which will keep AHCU's name. Judy Root will continue coordinating merger activities until she determines her retirement date. The Eagan branch will still be identified as the Bluestone branch of AHCU, said the credit union's website. The credit union's website attributed the merger to a combination of slow growth, loan losses and added regulatory expenses that limited Bluestone's ability to provide a full range of financial services and resulted in lower dividends.