CU Community Credit Union has announced today that it has reached an agreement with Southwest Missouri Credit Union to merge operations following recent votes by its board of directors and membership. The combined entity will go forward under the CU Community Credit Union banner once the merger receives regulatory approval and integration is complete, which is projected for December 2012.
CU Community Credit Union is the fourth largest credit union in Springfield in asset size with over $76 million in assets and 6,400 members. CU Community’s members include employees, families and retirees of City Utilities, other select employee groups, and people who live in Greene and Christian Counties.
Southwest Missouri Credit Union’s main sponsors are CoxHealth, SRC Holdings, Reckitt Benckiser, among others. Through the merger, CU Community will gain approximately 3,700 members and assets of $11 million.
“This is a win-win situation for both CU Community Credit Union and Southwest Missouri Credit Union, and combining the strengths of our credit unions translates to considerable benefits for all members,” said CU Community’s President and CEO Judy Hadsall. “This merger makes sense for a number of reasons. First, both of our credit unions live by the same service and ‘member-first’ philosophy. Second, we will realize increased economies of scale that will help reduce costs, strengthening CU Community’s cost advantage and further enhancing our financial value proposition. By uniting resources, we feel that the combined credit union can offer our combined membership more affordable financing options and access to more products and service than they had access to before.”
“Smaller financial institutions like Southwest Missouri Credit Union are having a difficult time flourishing in today’s market due to heavy compliance burdens, shrinking margins, a lack of marketing dollars, and increased competition from banks and larger credit unions,” said Southwest Missouri Credit Union President Gene Donley. “We want to continue to provide our members the excellent service they have come to expect and offer them all the financial products and services that consumers want and need. That’s why a merger of our credit unions is a good initiative.”
“We chose CU Community Credit Union as our partner because it is a thriving financial institution that has made the necessary investments in people, products, service and technology to best serve its members,” Donley continued. “It is among the most profitable credit unions of its size in Missouri and it is very well capitalized. “
Judy Hadsall will continue to serve as president and chief executive officer of CU Community Credit Union and Gene Donley will become vice president of business development. Board members from SWMCU would be added to the CU Community Credit Union board of directors. For more information, please email or call us at 417.865.3912.