BILLINGS, Mont. (1/3/12)--On Sunday, the Helena, Mont.-based Treasurer State Corporate CU started the year out by officially merging into the Wichita, Kan.-based Kansas Corporate CU. Credit unions in Eastern Montana told a local newspaper why they supported the merger.
Most Montana credit unions believe a merger will benefit them and increase their reach, while members will see no difference in the services provided, said Examiner.com (Dec. 28). Of Treasure State's members, 100% voted for the merger.
Kevin Mayer, president/CEO of Sidney, Mont.-based Richland FCU and a board member of Treasure State, noted the credit unions believed the Kansas business plan and its well-capitalized position add no real risk to member credit unions. Also, Montana will have representation on the Kansas Corporate board.
Kansas Corporate can provide all the services the Montana corporate offered plus "enhanced services, investment services, sound asset liability, and lines of credit. Our regulator requires us to have supplementary lines of credit and Kansas is able to do that for us," Mayer told the newspaper. He cited three reasons why Richland chose to go with the Kansas Corporate: line of credit, asset liability assistance, and investment services.
At Glendive-based Glendive BN FCU, CEO Jenifer Knutson told the newspaper her credit union will gain three times the borrowing power and the merger transition will be seamless. Also in Glendive, Cindy Scheetz, CEO/manager of the $17 million asset Badlands FCU, noted her credit union has seen a surge in members, and although her members won't see a difference in services, the Kansas Corporate will provide an engine for the needs generated by the increasing capacity.
In eastern Montana, all the credit unions except $930,000 asset Froid (Mont.) FCU elected to go with the Kansas Corporate, said the article. Instead of joining another large corporate credit union, said Froid's manager, Elaine Clark, its board chose to feed into a smaller Montana credit union. She told the newspaper that Kansas' mandatory agreements don't allow the credit union to reclaim shares if its status changes.