The Northwest Credit Union Association and the Idaho Credit Union League announced Friday a two-year strategic alliance management agreement that may pave the path to a merger of the two trade groups by 2019.
Effective January 1, 2017, the Northwest association will provide a full suite of products, services, and programming to Idaho league member credit unions.
Troy Stang, president/CEO of the Northwest association, will also become the president/CEO of the Idaho league. Idaho league president/CEO Kathy Thomson will retire next year.
Kent Oram, who chairs the Idaho league's board of directors and is president/CEO of the $2.6 billion Idaho Central Credit Union in Chubbuck, emphasized the two organizations are fully committed to a successful 24-month alliance, which may lead to a formalized merger of the Idaho league and its affiliated service corporation with the Northwest association.
"This gives Idaho credit unions the opportunity to experience what is possible," Oram said.
Stang noted there is a lot of pride and ownership in the legacy and the culture that the Idaho credit unions have nurtured with their own league over many years. The Idaho league was established in 1936. "The biggest piece that this two-year test drive will allow is for the Northwest Credit Union Association to demonstrate how we can really embrace and celebrate the culture and legacy in Idaho, have a very successful state specific advocacy, and also leverage the regional model that brings scale to the broader family of credit unions," Stang said. "We are committed to delivering what is important to the Idaho credit unions."
What's more, the two trade groups have other established collaborative partnerships. For example, in August the organizations announced a three-year agreement to jointly host the annual MAXX Convention. Last year, Idaho league member credit unions participated in the Northwest association's networking council programs.
In addition, a broad geographic footprint is already in place in the Northwest with some Oregon and Washington credit unions currently working across the Idaho border, Stang noted.
Under the agreement, the Idaho league structure will remain and will continue to be governed by its board of directors.
The Idaho Governmental Affairs Committee will continue to manage the state level advocacy agenda from a new Boise-based office where five to eight employees will work.
The Idaho league has sold its current building. That deal is expected to close at the end of the year, Stang said.
"The strategic alliance augments the combined power of 184 credit unions in Oregon, Washington, and Idaho, creating a robust collection of tradition, independent thinking, and bright minds," Oram said. "Collaboration is the cornerstone of the credit union movement, and this collaboration empowers one community of credit unions to enhance the value and impact that nearly six million of their members enjoy."
The three-state collaboration also presents new networking, resource sharing, and professional development opportunities for all credit unions in the region.
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