Two South Dakota credit unions announce plan to merge

Northern Hills Federal Credit Union in Sturgis, South Dakota, and Sentinel Federal Credit Union in Rapid City, South Dakota, are planning to merge in a deal that would create an institution with more than $280 million of assets and serve nearly 20,000 members.

Keith Robbennolt, the president and CEO of the $155 million-asset Sentinel, would become chief executive of the newly merged credit union and Floyd Rummel, the president and CEO of the $127 million-asset Northern Hills, would become the combined institution’s president.

The deal, which still must be approved by Sentinel’s members, aims to “enhance our digital service strategy and increase our product depth, while delivering an even more seamless member experience ... and provide employee growth opportunities,” Robbennolt said in the news release announcing the deal earlier this month.

“Joining forces with Sentinel FCU is the first step in a series of strategic decisions designed to grow our respective credit unions and better serve our members,” Rummel said in the release.

Members of Sentinel are expected to vote on the proposal in the second half of 2022. Should the deal be finalized, the combined organization will operate under a new name that has yet to be determined.