Why Merge?

Considerations for the merger

Goals

Almost five years ago, the Mill City board of directors started working toward the goal of creating a $500 million credit union. This asset size would help create savings due to economies of scale. The reality over the years was that General Mills was not growing so we expanded our charter to include a community area within Minnesota. Since then it has become obvious that community growth alone is a slow path to this goal. The overall desire is to increase membership and serve current members by diversifying products, using their funds wisely and extending local reach.

Cost of doing business

What are the costs? Since the Great Recession already high regulatory costs grew even more. For example, in 2016, 15% of credit union industry expenses were spent on regulation related efforts; larger credit unions can absorb those costs better and it impacts members less.

Extensive research

Board and management have discussed and analyzed many options, over an extended period of time, including: remaining a free standing credit union; merging other organizations into our organization; joining a Network Credit Union; and merging into larger organizations. In all, many options have been evaluated. This merger made the most sense because it helps us achieve the goals shared above; it follows a long and detailed process and comes with the unanimous support of the Mill City CU Board of Directors.