For the first time, the $155 million Valley Federal Credit Union of Billings, Mont., is reaching across the Wyoming border to expand, completing its first merger of the ailing $8 million Cody Schools FCU.
C.H. Steele, president/CEO, said the southern Montana CU has long coveted extending its field of membership to a market area encompassing both states and had months ago approached Cody management regarding consolidation.
"They had undergone plenty of that crap that credit unions their size have had to go through on compliance etc. and so they accepted our merger bid," Steele said.
The merger, made effective this month, provides an entry for Valley to reach various government agency employees working in the Wyoming portion of Yellowstone National Park and in Park County.
The 22,000-member Valley Federal has seven branches and operates in eight Montana. The 2,000-member Cody Schools, founded in 1962, lost $103,000 in 2009 and $57,000 through the first nine months. Its net worth was at 3.47% at Sept. 30.
"Cody Schools is a credit union that simply couldn't afford to continue operating with too many hands in their pockets," Steele said.
Completion of computer conversion is expected next month or in March, said a Valley statement.