PLYMOUTH, Minn.–Two big Minnesota credit unions have announced plans to merge.
The $1.58-billion TruStone Financial Credit Union and the $1.42-billion Firefly Credit Union in Burnsville said they plan to combine.
The deal still requires a vote by membership and regulatory approval. TruStone Financial said on its website it will convert to a state charter as part of the merger, saying doing so gives it greater ability to expand.
The CUs are currently the third and fourth largest credit unions in the state and would be the second largest, after Wings Financial Credit Union, when the deal is complete. It would have approximately 188,000 members.
In a letter to members on the TruStone Financial website, CEO Tim Bosiacki announced the merger as well as his own retirement plans, effective in January 2021, when the two credit unions said they hope to have the merger completed, with systems integration to take another year.
Firefly CEO/President Dale Turner would take over as CEO of the combined institution, according to the two CUs.
According to FAQs on its website, TruStone Financial would be the surviving name, with the CU saying the decision was based on brand recognition research conducted in the Twin Cities, St. Cloud, and southeast Wisconsin.
‘Tremendous Amount of Value’
“I couldn’t be more excited about this merger,” said Turner in a statement. “After much consideration and a lot of hard work, the board of directors and I can say with confidence that this merger would provide a tremendous amount of value to our members, more opportunity for our employees, and would allow us to make a bigger impact on the communities we serve. This merger would result in nearly 80% of our Twin Cities’ membership living within five miles of a branch location - and that’s just one of several reasons I am passionate about this partnership.”
Added Bosiacki in a statement, “This merger is a true strategic partnership, one highlighted by the fact that we’re working collaboratively to determine best practices for the combined organization. Together we would increase our presence across Minnesota and southeast Wisconsin resulting in more access for our combined membership. Simply put, this merger is a win-win.”