Two well-known Minnesota credit unions are planning a merger that would make them the fourth-largest credit union in the state.
Leaders of Spire Credit Union and Hiway Credit Union said in a news release that they consider the move a “merger of equals.” But the plan involves Hiway joining Spire’s “more expansive community charter,” and Hiway members will need to approve the merger. The National Credit Union Administration has already approved the proposed merger.
The credit unions said current Spire President/CEO Dan Stoltz will become CEO of the new organization, and current Hiway President/CEO Dave Boden will become president. The combined organization will have a new name that’s yet to be determined.
“We’re proud to bring together two already strong credit unions for the betterment of all involved: our members, our people and our communities,” Boden said in a news release.
“With the expanded branch network, and to meet the needs of a larger organization, we’re excited to be able to offer potential new opportunities to our people,” Stoltz said in the release.
Spire and Hiway are currently the fifth- and sixth-largest credit unions in Minnesota, each with about $2 billion in assets.
Hiway has the smaller footprint, with four branches in the Twin Cities and more than 90,000 members. It also operates four high school branches in St. Paul. Spire has 22 branches, from the Iron Range to Waseca, Minn., although most are in the Twin Cities area. Spire has more than 150,000 members.
The credit unions said all branches will remain open, and all employees retained. Information sent to Hiway members says they will retain account numbers and other key banking features.
The vote by Hiway members is set to wrap up in September. If approved, the merger would take effect Jan. 1.