Wyoming League Sells Service Corp. to Colorado League

DENVER – Citing an income decline in recent years, the Wyoming Credit Union League is selling its service corporation to Colleague Services Corp., the processing unit of the Colorado Credit Union League. Terms were not disclosed. In a statement, the Wyoming League, which has been managed by the Colorado League the last five years, said the sale of the $310,000-asset Wyoming Credit Union League Services Inc. to Colleague cements its long standing ties to the Colorado League. It also “ensures a future income stream” for the Wyoming League, said the statement. The Colorado League said it welcomed the chance to take over the operation which “because of economies of scale” can prove beneficial to both leagues. The purchase which was to be finalized by Dec. 31 “basically solidifies our relationship with the Wyoming League since we already work closely with them on card services and mortgages and with this agreement, their net income can increase,” said Douglas Burke, senior vice president of the Colorado League. He said there are no plans “to look at other states” where it might acquire League service firms, but “if the opportunity presents itself, we would consider it.” Burke noted that the last state-to-state sale that he was aware of occurred years ago with Arkansas selling its unit to Texas. Similar pacts are in existence in New England between Massachusetts, Rhode Island and New Hampshire. On the west coast, California manages the Nevada League. A press statement on the Wyoming Credit Union League Services noted that the two leagues “have a long history together” and that the two were among the first “to share an employee more than a decade ago” and also have the same corporate credit union, SunCorp., for 25 years. Vickie Nelson, chairman of the Wyoming League and president of the $8 million Burlington Co-Op Federal Credit Union of Casper, said negotiations on the sale have been underway for months. “A counter offer” was recently approved by the Wyoming League Board, she said. Discussing the decline in income, Nelson noted that marketing commissions through CUNA Mutual and Clarke-American, the check printing firm, have dropped in recent years as more of the servicing activity moved to the League offices in Denver. A 2001 statement showed total income before expenses of $100,000, but net income after taxes of $6,900 for Wyoming CU League Services, she said.