Credit unions on Iowa-Nebraska border plot merger
N.W. Iowa Credit Union in Le Mars, Iowa, is set to merge into Siouxland Federal Credit Union later this year, pending member approval.
The deal, already approved by state and federal regulators, is expected to provide a wider branch network, new products and services, and improved technology for N.W. Iowa members.
In a video message from the two credit unions’ CEOs announcing the deal, N.W. Iowa CEO Steve De Boer said the need for the merger was driven by rising technology costs, the increasing complexity of regulatory compliance and “statewide competition starting to filter into our market.”
N.W. Iowa has one branch in Le Mars, while Siouxland — based in South Sioux City, Neb. — has locations in Iowa, South Dakota and Northeast Nebraska.
N.W. Iowa CU’s 2019 net income was about $562,000, according to call report data from the National Credit Union Administration, roughly level with what it earned in 2018.
Siouxland FCU CEO Joel Steenhoven said in the video that his credit union “admire[s] and respect[s] the solid financial foundation and service-centered culture N.W. Iowa has built over the last 50-plus years." He noted that along with bringing two of that CU’s board members onto the Siouxland board, a “sizable charitable endowment” will also be established to fund various causes in Le Mars and the surrounding area.
A member vote is expected to take place by June 25, and members have been mailed ballots but an online vote is also being conducted.
“Due to the current pandemic we are unable to hold an in-person public meeting, but we hope this video message gives you a little more background,” Steenhoven said.
Siouxland FCU holds more than $195 million in assets while N.W. Iowa has assets of more than $57 million.