Chemical CU in Clinton, Iowa, has agreed to merge with DuTrac Community CU in Dubuque, Iowa.
The financial terms were not announced. The deal would expand the DuTrac's presence along Iowa's eastern border, where the $13 million-asset Chemical has 1,500 members and one branch.
"While we're still at the first step in the process, we believe this will be a win-win for our members, sponsor companies, communities and employees," said Harlan Pedretti, chairman at the $603 million-asset DuTrac.
The deal is expected to close in the second quarter of next year, according to a DuTrac spokesman.
Following the merger, Chemical will assume the DuTrac brand. Andrew Hawkinson, DuTrac's president and chief executive, will lead the combined company.
DuTrac has $603 million in assets and approximately 42,000 members.
