WICHITA, Kan., and ST. LOUIS (11/17/14)--Kansas Corporate Credit Union (KCCU) and Missouri Corporate Credit Union (MCCU) have announced that the two organizations have entered into an agreement, in principle, to merge.
Over the next 45 days, the two corporate credit unions will perform the necessary due diligence to finalize the merger, and also will host meetings with members to offer details and answer questions.
"Based upon the changing landscape over the past few years, we believe an opportunity exists for a regional corporate that is focused on local member service and relationships," said MCCU Chair Dave Osborn and KCCU Chair Bill Hauber in a joint statement. "The combined corporate will have a solid core membership base that will include capitalized members from eight different states. This merger will provide the ability to achieve even greater operating efficiencies and economies of scale to ensure continued competitiveness of our products and services."
KCCU previously merged with Treasure State Corporate CU, Helena, Mont., and also recently incorporated members from several other surrounding states.
The corporate credit unions' respective memberships must each vote to approve the merger and, because both organizations are state-chartered and federally insured, the move will require approval from both state regulatory agencies and the National Credit Union Administration.
According to the terms of the proposed agreement, KCCU will act as the corporate credit union, but operate under a newly developed name that will better reflect the full membership.
Missouri will continue to have governance support by maintaining operations and staff at its current home in St. Louis. The new corporate credit union will possess a combined balance sheet of assets between $700 million and $800 million. It will serve roughly 293 capitalized credit union members, in addition to multiple credit union service organizations and trade associations.
"Both MCCU and KCCU have a long history of providing cooperative financial services to members and enjoy substantial loyalty due to extensive personal relationships with members," said Kitty Gray, MCCU president/CEO. "We both also have a local presence--which allows us to respond to the need of members--and have strong reputations for managing financially sound cooperatives."
Added KCCU President/CEO Larry Eisenhauer: "It just makes sense for a number of reasons, including our proximity; our long-standing history of working together; and our similar philosophy, culture and values. We believe that a merger of the two organizations will be extremely successful for the long-term benefit of our members who desire to receive financial services in a cooperative fashion."