Wisconsin Credit Unions Announce Intent to Merge
If approved by regulators and members, the Kohler CU-Shipbuilders CU merger will take effect in October.
Two Wisconsin credit unions – the $617 million, Sheboygan-based Kohler Credit Union and the $117 million, Manitowic-based Shipbuilders Credit Union – are planning to become one this year, according to a joint announcement from the credit unions.
If approved by regulators and members, the merger is set to take effect in October 2024 and the combined credit union would retain the Kohler name, the institutions said. The boards of directors for both credit unions have already approved the merger.
“As our journey unfolds, the merger of Kohler Credit Union and Shipbuilders Credit Union emerged organically, driven by the presence of our existing branch and a compelling opportunity for growth,” Tony Klockow, president/CEO for Kohler, stated. “The union symbolizes the convergence of strengths and shared visions. Together, we are shaping a more robust credit union that promises significant opportunities for our members, communities and dedicated employees.”
According to a statement on Kohler’s website, leadership teams from both organizations will combine, with Klockow serving as president/CEO of the merged credit union. In addition, Kohler’s board of directors will gain two seats to be filled by current Shipbuilders board members.
Mike Steimle, interim president/CEO for Shipbuilders, stated, “This merger is propelled by optimism and an unwavering dedication to our members. It signifies more than just a consolidation of resources; it’s about magnifying the strengths of both institutions to enhance member service. Ensuring the financial well-being of our members remains paramount as we navigate through this transition.”
Established in 1938 to serve the employees of Manitowoc Shipbuilding Company, Shipbuilders currently has three branches in Manitowic and Mishicot, Wis., and more than 30 employees. Kohler, also founded in 1938, currently manages 10 branches in Eastern Wisconsin. Altogether, the two credit unions serve those who live or work in an 11-county field of membership in Wisconsin.
Kohler’s statement said regulatory approval will take place in April and May, and be followed by a member vote in August. The integration of Shipbuilders’ systems into Kohler’s is set to take place after the effective date of the merger in October, and upon completion, Kohler members will be able to access the three branches previously operated by Shipbuilders.