STURGIS, S.D.–Credit unions in two states have announced merger plans.
In South Dakota, the $127-million Northern Hills Federal Credit Union and the $155-million Sentinel Federal Credit Union said they are looking to combine, and are now seeking regulatory approval.
“This is a strategic partnership between two stable and financially sound credit unions and represents a merging of equals that will further enhance the member experience in both credit unions,” the two CUs said in a statement.
As of Sept. 30, NHFCU reported $1.2 million in net income with capital of 9.9%, while Ellsworth Air Force Base-based Sentinel FCU reported $1.9 million in net income with capital of 9.09% capital.
Network of 11 Branches
The credit unions said the merger will expand the combined credit union’s workforce to approximately 80 employees and 11 branches throughout western South Dakota serving nearly 20,000 members.
Plans call for Keith Robbennolt, president and CEO of Sentinel FCU, to be the CEO of the newly merged credit union, with Floyd Rummel, president and CEO of Northern Hills FCU will serve as the credit union’s President.
“Joining forces with Sentinel FCU is the first step in a series of strategic decisions designed to grow our respective credit unions and better serve our members,” said Rummel. “Our team does an outstanding job serving members, but we believe we have the potential to have a much more robust product mix to meet our members’ evolving financial needs.”
Digital Service Enhancements
Added Robbennolt, “We are excited about this strategic partnership with Norther
n Hills FCU. Through the combined resources of two strong credit unions and unified membership, we will be in a position to further enhance our digital service strategy and increase our product depth, while delivering an even more seamless member experience. Our membership and communities will thrive as a result of this partnership. We are excited to provide increased member access, benefits, and employee growth opportunities, all while remaining a strong and healthy credit union. It was important for us to join forces with a local credit union like Northern Hills FCU, which shares our same vision and core values.”
If approved by members, plans call for the merger to be completed in late 2022. A website, MovingForward-Together.com, has been created to relay merger related information
Massachusetts Merger
Meanwhile, in Lynn, Mass., the $319-million St. Jean’s Credit Union said it is seeking to merge in the $18-million Revere Municipal Credit Union. If approved by members plans call for the deal to take place in early 2022, creating a 19,200-member CU.
St. Jean’s CU reported $1.24-million in net income and net worth of 8.39% as of Sept. 30, while Revere Municipal reported a net loss of $21,614 and net worth of 8.05% as of the same date.
“Both of our teams are excited for the opportunities that combining forces will bring to our members and our employees,” stated John Kingston, manager of Revere Municipal Employees FCU, in a statement to the Cooperative Credit Union Association. “With the talent and products at both credit unions, we will be able to provide a competitive edge, enabling us to offer best-of-breed products and services to our membership.”
‘Greater Together’
Added C. David Surface, president and CEO of St. Jean’s CU, “The combination of our credit unions will allow us to further dedicate resources to the municipal employees in Revere, both in-person and digitally. Currently, both of our credit unions deliver great value to our membership, our leadership teams and boards of directors believe we can be even greater together.”
The credit unions have not yet filed their disclosure forms with NCUA.