Wyoming’s No. 1 credit union merging with Community Financial

Wyoming’s largest credit union is planning to merge with a smaller credit union in Colorado to form a new federally chartered entity.

Warren Federal Credit Union in Wyoming will be gobbling up the smaller Community Financial Credit Union, a Colorado state-chartered financial institution with three Colorado locations in Broomfield and Boulder. Warren has eight locations spread across Cheyenne and Laramie in Wyoming, and Wellington and Fort Collins in Colorado.

According to the Wyoming Business Report’s 2015 Book of Lists, Warren had more than 51,000 members in 2014, with assets of nearly $538 million. Combined, Warren and Community Financial will have assets exceeding $800 million and serving nearly 70,000 members.

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Greg Hill, president and chief executive of Community Financial, said in a phone interview that the merger is a proactive step because both are healthy institutions.

“Neither of us need to merge,” Hill said. “This is about us talking about what our combined future might be.”

He added that the merger is a large one on a regional scale, though similarly sized mergers have gone through recently in Colorado, such as the one between Premier Members Federal Credit Union and Boulder Valley Credit Union announced in March.

Such mergers are becoming more frequent, especially as a percentage of remaining charters, a trend pushed largely by regulations and economics.

“It is getting harder for credit unions and banks of any size to continue to compete and comply,” Hill said. “The zero-interest rate policy from Fed is starting to take its toll. … Where do we find earnings in the future without going down the heavy fee path?”

Getting larger, for these two credit unions, could lighten some of the more-difficult problems going forward for both organizations while providing a dividend for Community Financial’s members, who would likely get at least $70 apiece if the merger is voted through by members. The boards of both credit unions have already voted it through, and Hill expects regulatory approval before year-end. The merger will likely be finalized in spring 2016.

“We have been preparing for this moment for a long time,” said Stephanie Teubner, president and CEO of Warren. “This merger is a major win for Warren Federal Credit Union and will allow both staff and members to continue growing together.”

The combined federally chartered organization’s name will change, and Hill said Thursday they would be meeting that day to discuss the name change. In the new credit union, Hill will act as president, while Teubner acts as CEO.

The timing of the merger, Hill said, just felt right under increasing pressure that is likely to continue building for several years.

“It felt like a great fit culturally and in how we serve,” Hill said.