Collegeville credit union plans merger with Central Minnesota Credit Union
Tuesday, March 7, 2017
St. Cloud Times (March 7, 2017) - After nearly 80 years in business, Collegeville Community Credit Union is in the final stages of preparing to merge with Melrose-headquartered Central Minnesota Credit Union.
Pending member approval at a special meeting set for 7 p.m. Thursday at the College of St. Benedict's Gorecki Center along with approval from regulatory bodies, Jim Dwyer, vice president of CCCU's board, anticipates the transaction to be completed by April 30.
"We've been looking at this idea for a long time," Dwyer said. "But we have been seriously considering this idea for the past six months."
Dwyer said changes in the banking and credit union industry have made it difficult for the financial institution to continue serving its 2,100 members in its current capacity.
"Basically there were three things that happened," Dwyer said. "The rental price of money is down, the increase in regulations with additional forms and reports to file and then technology."
With about $10 million in assets, Dwyer said CCCU is not in a position to invest in some of the more modern technological advances many financial institutions provide for its clients.
"There just isn't enough money to do that," Dwyer said. "We are up against our small size. People still wonder how we were able to stay open for as long as we did."
Dwyer said the board's decision to unanimously pursue a merger with CMCU was based on the values the Melrose-headquartered institution has. In addition, with nearly $1 billion in assets and 17 CMCU branch locations, CCCU members would have access to more services including better farm and home loans, he said.
"Our basic problem is that we got squeezed out by all of this stuff going on," Dwyer said. "And if we are going to merge it's better to do it now than to be forced into it later."
With a merger in the works, Dwyer said, Collegeville Community Credit Union is no longer considering expanding their facilities near downtown St. Joseph through the purchase of the former city hall building.
"The succeeding credit union doesn't want it since they have a location in St. Joe," Dwyer said. "And we can't afford it. It's no longer feasible for us."
Dwyer said he is not sure what the future holds for both of CCCU's branch locations — one on Fruit Farm Road in St. Joseph and the other located in Sexton Commons on the campus of St. John's University.
"The office in Sexton Commons hasn't been very profitable for us," Dwyer said. "So I'm sure that is the first thing they will look at."
If approved by a majority of the members, assets will be transferred from Collegeville Community Credit Union to Central Minnesota Credit Union. Members wishing to remain on with CMCU will be issued new accounts.
Collegeville Community Credit Union has been in business since 1938. The credit union serves members from Albany, Avon, Cold Spring, Collegeville, Le Sauk Township, Rockville, Sartell, St. Augusta, St. Joseph, St. Wendel and Wakefield Township along with employees and students at St. John's University and the College of St. Benedict.