Expanding its Wisconsin footprint, the $1.3 billion Educators Credit Union of Racine said over the weekend its planned merger of the $11 million Kyle Central CU of South Milwaukee represents a “strategic fit” enhancing coverage in a desirable area.
The merger, which won formal NCUA approval two weeks ago, will become effective Jan. 1, said Robert Walleser, senior vice president of branch operations at Educators.
Kyle, with 5,000 members and founded in 1934, had been struggling for months to build its product base but chose the merger route as most expedient, said Walleser.
“They looked to us for a partnership,” Walleser said, noting that there remain many small CUs throughout Wisconsin grappling with compliance and regulations burdens “as well as NCUA premiums.”
Many small CUs are finding it hard “to generate income,” he added.
Discussions with Kyle Central, which lost $77,000 in 2010 and $56,000 through the first half, had been under way for a year, said Walleser. Kyle Central had remained well capitalized, however, at 13.17%.
Last week, Great Lakes FCU of North Chicago, Ill., completed its merger of another small Milwaukee CU, the $11 million Federated Family.