Power goes out as Energy Services Credit Union merges into Spire CU
St. Cloud, Minn.-based Energy Services Federal Credit Union merged into SPIRE CU in Falcon Heights, Minn., earlier this month, following a vote of approval from 90% of participating members.
The $10 million-asset Energy Services’ most recent call report showed a loss of more than $12,000 during the first quarter of 2019, following just $7,565 in net income last year. Founded in 1933, Energy Services served only about 1,400 members, most of them Excel Energy employees and contractors and their family members,
Calling the merger “a win for everybody,” Energy Services Board Chair Darrell Ostendorf said in a statement that the credit union’s leadership recognized the need for a merger “to maintain and grow the long-term value” of credit union membership.
“We are excited to service the St. Cloud area and offer expanded products and locations to ESFCU members.” said Dan Stoltz, SPIRE’s president and CEO. “This partnership will bring countless opportunities to ESFCU members.”
A note on the $1.1 billion-asset SPIRE’s website said some Energy Services members would receive a special dividend payout following completion of the merger “as a result of outstanding stewardship” from the previous credit union managers, board of directors and supervisory committee.
ESFCU saw rising profits for each of the last three years, though those figures never topped $10,000. The credit union recorded a $12,000 chargeoff during Q1, which contributed to its loss.