In a move reflecting continued economizing by the industry, theColorado and Wyoming Credit Union Associations are making plans fora formal merger later this year as part of the ongoingconsolidation trend among state leagues.
Officials of the two trade groups said the planned merger andformation of a new Mountain states organization, yet to be named,reflects the shrinking numbers of credit unions in the region andunderscores the need to pare budget expense and duplications.
If the merger is approved by respective members in specialmeetings, the linkup would effectively end the 12-year managementcompact in which the 26 Wyoming CUs are served out of the Coloradogroup's Denver office as well as a satellite operation inCasper.
“There is no guarantee that a formal merger will occur,” forecastLarry Knopp, chairman of the Wyoming group and president/CEO of the$160 million Uniwyo CU of Laramie. The league boards have signed aletter of intent.
“In this time of consolidation of credit unions, our members wantus to pursue ways to continue providing them high-qualityassociation services while looking for new ways to operate moreefficiently and effectively,” said Knopp.
Douglas Ferraro, chairman of the Colorado association andpresident/CEO of Bellco CU of Greenwood Village, said the trendtoward fewer CUs shows no letup, which means fewer leagues.
“Colorado and Wyoming are fortunate to have already formed a closebond, which makes these discussions both easier and, hopefully,more successful,” said Ferraro.
The Bellco CEO said the combined organization “would have newrecognition” in the public arena. A subcommittee of the twoassociations, which could comprise CUs in the two states, is beingorganized.
John Dill, president/CEO of both associations, said the boards are“looking not just to merge, but to create something bigger andstronger out of our combined efforts.”
In a merger, Dill said there are a host of issues that will have tobe dealt with in the forthcoming discussions, including governance,board and committee appointments, dues, annual meeting locationsand staff coverage, among other areas.
Knopp said one area that could result in cost savings would beholding one annual meeting rather than two.
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