Once both credit unions reach $10 billion in assets, their debit interchange revenue will be cut in half. The Durbin Amendment reduced the debit interchange fee from about 44 cents to 21 cents per transaction.

As a combined credit union, the loss of debit interchange revenue will amount to about $50 million to $60 million, according to Wings President/CEO Frank Weidner. However, he said the newly-formed credit union – with $19.2 billion in assets – would be able to offset those losses through economies of scale and other efficiencies.

Weidner initiated merger discussions last fall, reaching out to Graves, which led to an agreement earlier this year for Wings to consolidate into Ent.

Weidner will provide leadership and support during the transition, but after the merger is completed he said he will be going his own separate way. He is not retiring.

“I will be looking at different options but I want to stay somewhat plugged into the industry in some form,” he said.

Although the credit unions are separated by 900 miles of geography, Graves sees real opportunities to serve markets in Nebraska, South Dakota, Iowa and other nearby states.

“We'll focus primarily on our core markets, which is Colorado, Minnesota and Wisconsin, but as opportunities come up in other markets between Minneapolis and Colorado Springs, we'll definitely take up any opportunities there,” Graves explained. “So I think you'll see us do a little bit more in rural locations, maybe a little bit more agriculture based lending, that type of thing, and serving the underserved in some of these outlying areas. We see ourselves really becoming the credit union of the Midwest in that way, and to serve in areas that maybe are not as well served today.”

Wings runs locations in Detroit, Atlanta and Orlando, where Graves also expects to look for opportunities as they present themselves in those markets.

In addition, the merger would strengthen the credit union's capacity to serve large institutions and commercial accounts.

“Wings has a robust commercial lending practice, and so we're looking forward to utilizing that and bringing that into our existing Colorado markets,” Graves said. “The whole intent is for us to be able to reach new markets, do more things, but also at the same time not lose track of the fact that we want to serve the underserved, and we think we can do that.”

If approved by federal and state regulators and Wings members, the consolidation is expected to close next year, with the merged credit union serving a membership of nearly 930,000.

The combined entity would be named Wings, which the credit unions noted celebrates their history and the positive histories ahead.

Founded in 1957, Ent was established to serve military and civilian personnel at Ent Air Force Base and Peterson Field in Colorado Springs. Established in 1938 by seven employees of Northwest Airlines in St. Paul, Wings began as a financial cooperative for airline staff and was originally named Northwest Airlines Employees Credit Union.

Post-merger, the board of directors will be chaired by Wings Board Chair Greg Miller. The new board will include six members from each credit union. Reporting to Graves will be four EVPs, two from each credit union, while the broader executive leadership team will include executives from both institutions.

In a prepared statement, the credit unions said they will not close any branches or lay off employees. Wings’ 721 employees operate 28 branches in Minnesota, three in Wisconsin, two in Michigan and one each in Georgia and Florida. Ent’s 1,484 employees run 58 locations throughout Colorado.

The credit unions have not yet submitted their applications to regulatory authorities. Although they said they are concerned about the ongoing uncertainty at the NCUA and how it might affect their application process, they are confident their merger will be approved.

Peter Strozniak can be reached at [email protected].