Connexus Merger to Add More Members in Wisconsin

Members of a Wisconsin credit union have agreed to become the seventh to be acquired by Connexus Credit Union of Wausau, Wis., in the last eight years and likely to put it at $2 billion in assets by year’s end.

Members of Bull’s Eye Credit Union ($156.6 million in assets, 18,817 members) voted in a special meeting May 23 to approve the merger with Connexus ($1.8 billion in assets, 308,827 members) effective Oct. 1, 2018, pending regulatory approval. The central Wisconsin credit unions announced their intention to merge April 27.

Both credit unions are well capitalized, and had healthy income last year. Bull’s Eye earned $1.1 million, or a 0.74% return on average assets, on par with the national ROA average of 0.78%. Connexus had ROA of 1.59%. However, Bull’s Eye membership had stalled from at least March 2013 to March 2017, and it had lost 703 members in the 12 months ending March 31.

Dave Stark, president of Bull’s Eye, said that he and the board had been seeking ways to provide better products, services and technology demanded by members of the credit union based in Wisconsin Rapids, about 50 miles south of Wausau.

“It became clear that ensuring our ability to thrive in the future rested in the opportunity to merge with Connexus,” Stark said. “Our combined credit union will be stronger and have more ability to return direct financial benefits to our members, as well as provide enhanced products and services,” he said. “This creates a competitive and innovative financial institution that exists to serve our member-owners above all else.”

Connexus was the 143rd largest credit union by assets as of Dec. 31, 2017, up from 159th a year earlier. J. David Christenson, Connexus’ president/CEO, said the merger will result in a stronger credit union.

“The merger is really about the future,” Christenson said. “As the landscape in financial services continues to evolve, this partnership will enable us to continue exceeding expectations for our members and the communities we serve.”

If the Bull’s Eye deal is approved, Connexus will have added $793.1 million in assets and 76,189 members through seven acquisitions in the last eight years:

• Wausau City Employees Credit Union, Wausau, Wis. ($3.1 million in assets, 820 members) completed in the second quarter of 2010
• Maple Hill Credit Union, Wausau, Wis. ($11.4 million in assets, 2,035 members) completed in the first quarter of 2012
• Tower Credit Union, Wausau, Wis. ($44.6 million in assets, 9,279 members) completed in the second quarter of 2012
• Cintel Federal Credit Union, Cincinnati ($64.1 million in assets, 8,397 members) completed in the first quarter of 2014
• Endura Financial Federal Credit Union, Minneapolis ($344.1 million in assets, 24,651 members) completed in the fourth quarter of 2014
• Air Line Pilots Association Federal Credit Union, Burr Ridge, Ill. ($169.1 million in assets, 4,367 members) completed in the fourth quarter of 2015
• Bull’s Eye Credit Union, Wisconsin Rapids, Wis. expected to be completed in the fourth quarter of 2018