BOISE, Idaho—The Northwest Credit Union Association and the Idaho Credit Union League have agreed to merge.
The agreement includes combining ICUL and its service corporation, League Services Inc. into the NWCUA and its service corporation, Strategic Link, Inc.
The combination is not a surprise: as CUToday.info reported here, in October of 2016 the two associations signed a management agreement, and credit unions in Idaho have been participating in NWCUA events and other programs this year.
“The boards and management believe this approach serves the future needs of member credit unions in all three of our Northwest states,” ICUL Board Chair Kent Oram said in a statement. “As we move this merger recommendation from the boardrooms to ICUL and NWCUA member credit unions, we recommend and encourage the ICUL and NWCUA members’ full support, and request approval of this merger plan.”
The merger agreement and recommendation addresses board governance and the distribution of equity. Upon consummation of the merger, the NWCUA is to have a 15-member board; nine currently elected directors of the NWCUA (the NWCUA board members will continue to serve as previously elected), and three newly appointed directors, as chosen by and from the ICUL/LSI board of directors. The ICUL has recommended to its membership that Oram, Trisha Baker, president and CEO of Lewis Clark Credit Union, and Dan Thurman, president and CEO of East Idaho Credit Union, serve in a continuing governance role.
According to NWCUA, equity management details in the merger plan more specifically include:
- The creation of a $600,000 “Pay It Forward Idaho Member Credit Union Engagement Fund,” which returns equity to engaged Idaho credit unions over a two-year period. The Fund applies to active Idaho member credit unions that have paid their respective dues no later than June 30, 2018, and continue to pay respective dues throughout the two-year period.
- A contribution of $500,000 to the Northwest Credit Union Foundation to further advance strategic priorities in asset building, economic empowerment, and cooperative development initiatives throughout the entire Northwest region.
- A contribution of the remaining equity (approximately $1.2 million) to the post-merged, three-state regional NWCUA organization.