WADENA, Minn.–Two more Minnesota credit unions have announced plans to combine.
The $14.7-million Wadena FCU said it will ask its 1,443 members to vote on merging into the $606-million MidMinnesota Federal Credit Union in Baxter, Minn.
In its disclosure to members filed with NCUA, Wadena FCU said the merger is desirable because it will expand and improve the services offered to members, ensure leadership succession planning into the future, strengthen future growth and sustainability within the Wadena community, expand and build upon educational opportunities and, overall, result in lower cost of services, lower loan rates, and higher dividends.
Wadena FCU reported net income of $33,730 at year-end 2021, with net worth of 23.17%. MidMinnesota, which has 53,000 members, reported net income of $8.9 million, with capital of 8.67% as of the same date.
WFCU said it plans to pay out a portion of its capital to members as part of the merger. If the merger is approved, the total distribution will be approximately $300,000, and each eligible member will receive an adjustment equal to approximately 2.67% of their share balances and certificate holdings as of Dec. 31st, 2021.
Wadena FCU said its current office will close effective with the building of a new branch in town.
The credit union said there are no plans to pay any merger-related compensation to members of management or the board.
As CUToday.info reported here, two other Minnesota CUs have also just announced plans to merge.
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