The $580 million Central Minnesota Credit Union said Tuesday itexpects to extend its ag-lending reach and servicing of ruralcommunities in the state with an Oct. 1 merger of the $22 millionHeart of the Lakes CU of New York Mills, Minn.

Central Minnesota, based in Melrose, said the consolidation ofhealthy Heart of the Lakes has been in the works for nearly a yearand coincides with the retirement of the CU's veteranpresident/CEO, Harold Siirila.

Siirila has been with the two-branch Heart of the Lakes for 36years.

“We've enjoyed an informal, working relationship with CentralMinnesota going back 30 years so this merger is something thatmakes sense for everyone,” said Siirila.

Central Minnesota has long emphasized its ties to ruralcommunities and dairy lending in the central part of the state andthe Heart of the Lakes merger gives it closer entry to the Fargo,N.D. market.

“This is our first merger,” said Rick Odenthal, president/CEO of Central Minnesota, adding thereare no current plans to add other small CUs “but we periodicallyget approached since we have nearly 16% capital.”

Odenthal said Central Minnesota even had a San Diego CU inquireabout merger interest “but we turned that down as we would aboutsomething in Milwaukee or anywhere out of our area of interest”outside the state.

CMCU has branches in 11 communities and operates in 13counties.