In a pre-Presidents Day transaction, the $340 million Connexus Credit Union of Wausau, Wis. has won member approval to merge the $11 million Maple Hill Credit Union and is looking to consolidate a second Wisconsin CU perhaps within the week.
“I am just not at liberty to discuss a second proposal we have before the members of another credit union,” said J. David Christenson, president/CEO of Connexus.
At a Feb. 17 meeting, members of Maple Hill, also of Wausau, agreed to the merger deal following three years of low profits.
"I guess you would have to say this is really sad since fewer credit unions in the marketplace does not help our industry," lamented Christenson.
Maple Hill, like other small CUs in Wisconsin and elsewhere, is simply unable to withstand the heavy regulatory burden and instead prefers the merger route, he said.
Maple Hill, with 2,000 members, endured a tough financial climb for several years “and they simply found they could not maintain a sustainable profit though the credit union has always remained healthy,” he said.
The merger is due for completion by the end of March, he said.