The boards of the $1.1 billion Dupaco Community Credit Union in Dubuque, Iowa, and the $83million Iowa Community Credit Union in Cedar Rapids have approvedan intent-to-merge agreement.

The agreement means Iowa Community CU will merge into DupacoCommunity CU during the first quarter of 2014.

Longtime IowaCommunity Credit Union President/CEO Mark Heth's decision toretire prompted a lengthy fact-finding analysis of financialinstitutions to merge with, said Iowa Community CU Board Chair GeneBrown. Heth joined Iowa Community as CEO in 1986. Prior to that, heserved as a consultant for the Iowa Credit Union League in DesMoines.

Heth said Wednesday that he plans to retire after the merger iscompleted though he will be available for any support ifneeded.

“The board concluded that Iowa Community members and employeeswill benefit substantially, both in the short- and long-term, bypartnering with Dupaco Community Credit Union,” he said in aprepared statement released Wednesday by both credit unions.

Iowa Community CU was chartered in 1950 and serves more than10,000 members.

The intent to merge agreement is the first formal step in aprocess. After due diligence, the proposed merger must be approvedby state and federal regulators, as well as the Iowa Community CUmembership.

“This partnership is a proactive step by two financially soundinstitutions to capitalize on their strengths and position the neworganization to move successfully into the future,” said DupacoBoard Chair Jeff Gonner.

Though Iowa Community CU posted a net income loss of $220,596 in2008, it recorded net income gains of $90,000 in 2009, $165,136 in2010, $156,000 in 2011 and $715,000 last year, according to NCUAfinancial performance reports.

Dupaco Community CU has increased its net income gains from $3.1million in 2008 to $21 million in 2012, according to NCUA financialperformance reports.

The combined institution would have 18 branches and more than80,000 members, with locations serving the Dubuque, Cedar Rapids,Waterloo, Cedar Falls, Dyersville, Manchester and Carrollcommunities in Iowa, as well as Platteville, Wis., and Galena,Ill.