In a merger underscoring compliance concerns of small creditunions, the $312 million Connexus Credit Union of Wausau, Wis.,said it expects to complete the consolidation of the $3 millionWausau City Employees CU by June 1. The merger proposal wasformally approved by WCECU members at its annual meeting lastThursday.

Though talks to complete the merger have been underway sinceDecember, the burden of complying with sometimes complex rules onRegulation E (courtesy pay), from the Office of Foreign AssetControl and Regulation Z has played a role in the merger, saidDavid Christenson, Connexus president/CEO.

He added that many small CUs, like the 820-member WCECU, havestruggled with paying the compliance bill and have sought outlarger CUs like Connexus for help.

Even though WCECU broke even last year and suffered only a smallloss in the first quarter, its CEO “was simply not ready to go onwith this task,” Christenson said.

He added that Connexus has “a long-standing relationship” withWCECU, one of five small central Wisconsin CUs served by Connexuson mortgage products and other offerings.

Christenson said Connexus has no desire to merge any of itsother small CU clients, but “stands ready to help as we have doneall along.”

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