MAPLE GROVE, Minn.–Two Minnesota credit unions are seeking to merge.
The $836.9-million Topline Financial Credit Union and the $284.8-million Anoka Hennepin Credit Union said they are seeking to combine, saying in a statement that doing so would provide the “opportunity to serve a broader community with the ability to provide financial services access to more consumers.”
The credit unions said the proposed merger has received preliminary approval from the Minnesota Department of Commerce and NCUA, and now awaits a vote by members of Anoka Hennepin’s membership vote.
“Notification and official ballots will be sent to all Anoka Hennepin Credit Union members, who will ultimately vote on the merger in a special members’ meeting to be held the end of June,” the credit unions said. “If members vote to approve, then formal approval will be granted by state and federal regulators, with an anticipated legal merger effective the summer of 2024.”
Topline Financial, which has 51,186 members, reported $1.474 million through Q1, with capital at 9.03%. Anoka Hennepin CU, which is based in Coon Rapids, Minn., has 18,625 members, and reported $12,145 in net income and net worth of 8.64% through March 30.
‘Greater Capital Base’
In a statement, the credit unions said the merger will provide a “greater capital base for growth, expanded market share, and an increase in economies of scale that will lower operating costs leading to overall benefits to credit union member-owners, such as competitive rates, free services, advanced technology and additional community philanthropy efforts.”
If approved, the credit unions said all employees will be retained.
Under the plan, Mick Olson, current president and CEO of TopLine, will serve in the same role over the combined organization, while Jeff Claussen, current President and CEO of Anoka Hennepin Credit Union, will serve as President and CEO of Anoka Hennepin Credit Union, a division of TopLine Financial Credit Union, until his retirement.
‘More Value’
“By combining our resources and financial strength, Anoka Hennepin members will come to experience more value, such as access to additional products and services, like mortgage and small business services, along with an expanded branch network,” said Claussen in a statement. “Our common focus on member advocacy, preserving a strong member-focused culture and passion to help more consumers achieve their financial dreams will continue to be a key driver.”
‘Similar Histories’
Added Olson in a statement, “Culturally, Anoka Hennepin and TopLine share similar membership histories comprised of serving employees of the education and telecommunications sectors, with both being state-chartered credit unions that focus on financial inclusion and access. Our shared vision and passion of helping members financially succeed and supporting the betterment of communities will remain a core commitment, driven by our comparable values and purpose of supporting financial well-being for all.”
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