WICHITA, Kan. — Two Kansas credit unions on Monday announced their intent to merge, a move that would create an institution with a combined 15 branches, $525 million in assets and more than 70,900 members.
The proposed merger was approved on July 24 by the boards of directors at both $76 million Central Star Credit Union, here, and $444 million Golden Plains Credit Union, which is based in Garden City.
The combination must still be approved by the NCUA, the Kansas Department of Credit Unions and members of both credit unions.
If approved, the merger is expected to be completed later this year.
The two CUs said the combination will provide expanded service offerings, additional locations, improved product lines and greater financial stability for both Central Star and Golden Plains members.
"Golden Plains Credit Union is the ideal strategic partner for us," Lee Williams, president and CEO of Central Star CU, said in a prepared statement. "We explored multiple options for our membership’s future growth, and a partnership with Golden Plains was without question a win-win for all. Both credit unions offer strong financial services, our fields of membership will enhance one another, and we share a common vision and values for members, employees and our communities."
Golden Plains CU President Erich Schaefer added: "The opportunity to provide our 3,000 Sedgwick County members with three outstanding local offices is a tremendous benefit. In addition, we are excited to join Central Star Credit Union in serving members in the aircraft industry, chemical industry, and the greater Wichita community."
According to Schaefer, all three Central Star locations would remain in operation, joining the 12 Golden Plains locations throughout western, central and southeast Kansas.
Central Star CU was chartered in 1940. It currently has 8,700 members and is the 17th-largest credit union in Kansas.
Central Star reported a first quarter loss of $13,408. Its net worth ratio as of March 31 was 8.4% ("well capitalized").
In 2013 it lost $408,239, including paying $53,356 to the Temporary Corporate CU Stabilization Fund. Its net worth ratio was 8.99% ("well capitalized").
In 2012 it had $555,034 in net income, after paying $60,870 to the Temporary Corporate CU Stabilization Fund. Its net worth ratio was 9.25% ("well capitalized").
Golden Plains CU was chartered in 1951. It is the third-largest credit union in Kansas with 62,200 members.
In its most recent call report, Golden plains had $794,387 in Q1 net income. Its net worth ratio as of March 31 was 9.95% ("well capitalized").
In 2013 it had $3.9 million in net income, even after paying more than $225,000 to the Temporary Corporate CU Stabilization Fund. Its net worth ratio was 10.37% ("well capitalized").
