HUTCHINSON, Kan.–Two Kansas Credit Unions are seeking to merge, and CEO succession again appears to again be playing a role.
The $474-million Heartland Credit Union and the $17-million Farmers Credit Union of Hays, Kan., are combining. Plans call for making the single branch of Farmers CU a branch of Heartland CU, which has eight branches.
“We are excited for the opportunity to welcome Farmers Credit Union members to Heartland,” said Dan Springer, Heartland Credit Union president/CEO, in a statement. “Our wide range of financial products, along with market leading rates, will provide excellent value to their members. It will also provide HCU the opportunity to expand our coverage area, better serving the growing number of Heartland members in central Kansas.”
Farmers Credit Union was founded, fittingly, by a group of farmers with proceeds from a bake sale, according to the CU. It now has approximately 1,000 members. Farmers CU reported a net loss of $113,167 on its Sept. 30 call report with capital of 8.99%.
CEO Plans Exit
According to the Kansan, initial discussions regarding a potential merger started after Farmers President Guy Forell announced his intention to leave the credit union later in 2021.
The merger still requires regulatory approval and a vote, most likely during Q1 2021, by members of Farmers CU.
Disclosure forms related to the merger have not yet been posted by NCUA.