Hutchinson, Kan.-based Central Kansas Credit Union has signed an intent-to-merge agreement with Wichita-based Credit Union of America.
Central Kansas CU currently has about 6,000 members and $36 million in assets, while CU of America boasts nearly 66,000 members and $805 million in assets. Under terms of the agreement, CUA will become the surviving entity.
The credit unions are currently performing required due diligence for the merger and memberships of both credit unions will vote on the proposed merger by March 29, 2018.
Subject to such approvals, the proposed transaction is scheduled to close on June 30, 2018.
According to Central Kansas CU David Dick, staff at both CKCU locations will be “retained and be able to continue serving our members.”
“We are really excited about merging with CUA,” Dick said in a statement. “They are a strong and growing credit union that will bring many innovative products and services to our members. Keeping up with technology is always a challenge and CUA has proven they can handle that challenge.”
CU of America CEO Frank Shoffner called Central Kansas CU is a ”well-run financial cooperative,” adding “A merger with them is an excellent opportunity for CUA to expand its services to the Hutchinson and Pratt communities. We’ll be able to serve existing CUA members in those markets, CKCU members and new community members.”
Shoffner added that “expanding our membership base will be a nice supplement to our already sturdy financial foundation.”
CKCU posted a net loss of about $43,200 last year, after generating net income of $71,600 in 2016.
Meanwhile, CUA generated net income of about $10.1 million in 2017, after posting net income of about $9.5 million in the prior year.