AMES, Iowa — Ace Community CU, a $34 million CU here, has announced plans to merge into $389 million Community Choice CU, based in Johnston, Iowa.
The two credit unions announced the merger in a joint statement last week, emphasizing that the partnership "will create a healthier and stronger financial cooperative for members of both organizations."
Timothy Wallen, CEO of Ace Community, said in the statement that, "We explored many options and a partnership with Community Choice Credit Union was the best strategic decision or us, and also a great opportunity for our members."
Community Choice CEO Roger Reiser said Ace Community members will be warmly welcomed, and that "by combining the strength of both credit unions, we will be expanding the service offerings for both membership groups."
In addition to expanding Ace Community's product lines, the merger will give Community Choice a larger branch presence, with branches extending from the greater Des Moines area all the way to Ames.
As of its September 2013 call report, Ace Community had lost $32,000 for the year and had only $11 million in loans on its books. It was listed as "well capitalized" with a net worth ratio of 17.44.
The merger still must be approved by NCUA, the State of Iowa Credit Union Division and Ace Community's membership. If approved, the deal is expected to be completed sometime in early 2014.
