Midwest Credit Union Merger Deal Probable

A July merger is likely between the five-branch Siouxland Federal Credit Union, with offices in Iowa, Nebraska and South Dakota, and the N.W. Iowa Credit Union – assuming the smaller institution’s members approve the deal.

Siouxland has three branches in Sioux City, Iowa and one each in South Sioux City, Neb., and Dakota Dunes, S.D. N.W. Iowa has one office in Le Mars.

Post-merger, the new Siouxland will have about $245 million in assets and serve approximately 24,000 members. N.W. Iowa members have until midnight on June 25 to submit their ballots.

If approved, the merger takes effect July 1.

In a statement, Chairman Richard Sudtelge said, “The Board of Directors of NW Iowa Credit Union and management support this merger.” He continued, “However, the final decision is up to you.”

N.W. Iowa will still operate under its current name for up to two years after the merger, as a division of Siouxland.

Siouxland’s current president/CEO, Joel Steenhoven, will continue to helm the credit union and NW Iowa’s current president/CEO, Steve De Boer, will remain at the Le Mars site for a transition period. According to the announcement, De Boer will remain with Siouxland in an advisory capacity.

In an interview, Steenhoven said he was confident the merger would be approved.

“I’ve heard nothing but positive responses,” he said from his office in North Dakota.

Discussions about merging the two entities had been going on roughly 12 to 18 months, according to Steenhoven, who’s been with the credit union for 31 years.

Steenhoven said he didn’t think the COVID-19 outbreak would have any impact on the merger.

N.W. Iowa’s De Boer said he didn’t foresee any obstacles to the merger.

“I think it’s a done deal,” he said. “It’s got a heck of a lot of advantages for our members. The board vote was unanimous, and they’re pretty representative of our membership.”

Among those advantages are more branches, De Boer said.

“We’re a single branch, so we’re picking up five – soon to be six – more branches. And they do have some enhancements that we don’t have.”

“They’re also going to be setting up an endowment to help charitable causes near and dear to the Le Mars community,” he added.

The chairman’s message said N.W. Iowa employees who wish to remain with the credit union will be able to do so, and that it will continue to have representation on the board.

The credit union “is committed to its community and has agreed to dedicate resources to building engagement within the local Iowa community with an investment in a charitable account with at least 51% percent of earnings thereof for charitable purposes, subject to NCUA rules and requirements of federal and state law as well as the safety and soundness of the combined credit union,” it said.

The accounts will continue to be federally insured through the National Credit Union Share Insurance Fund.

Siouxland was chartered in Nebraska in 1967, and was granted its federal charter in 1988. Steenhoven said its current assets are a little more than $200 million.

N.W. Iowa was formed by the 1994 merger of the Blue Bunny Employees Credit Union, which was chartered in 1966, and NIPCO Credit Union, launched in 1960.