WHAT DOES THIS ANNOUNCEMENT MEAN?
This exciting announcement means that Midwest Community Credit Union is moving forward with a proposed merger with Siouxland Federal Credit Union. This merger represents a strategic partnership between two forward-thinking credit unions, for the benefit of members, team members, and communities.
WHY DOES THE BOARD OF DIRECTORS RECOMMEND THE MERGER?
The board of directors believes by merging with Siouxland, and combining our two credit unions, provides the opportunity to achieve greater positive member, employee, and community impact and offer additional benefits to our members. The combined credit union builds an even stronger institution that is trusted, committed, and forward- thinking, while positioning us to serve members into the future.
As a result of this proposed merger, we would have the ability to remain competitive and be more responsive to members’ financial needs in a rapidly evolving financial services industry.
DO BOTH CREDIT UNIONS SUPPORT THIS MERGER?
Absolutely. The boards of both credit unions approved the proposed merger unanimously and are very excited about this merger with the growth and benefits it brings to our members, team members, and communities.
WHAT WOULD THIS PARTNERSHIP DO FOR THE CREDIT UNIONS?
Overall, our combined assets would be approximately $300 million, serving nearly 25,000 members with branches in Iowa, Nebraska, and South Dakota. With a competitive physical presence and Siouxland’s strengths in products, services, and technology offerings, we will be able to better serve our members and our communities.
WHAT ARE THE ADVANTAGES OF BEING A LARGER CREDIT UNION?
Becoming a larger credit union would provide opportunities to leverage resources and position us for continued growth. In turn, this would result in being able to provide even more benefits to members in the form of more product and service access, and new and robust technologies and services, while continuing Midwest’s ongoing community presence.
WHY WAS SIOUXLAND CHOSEN AS OUR MERGER PARTNER?
Siouxland Federal Credit Union had the greatest financial strength and offered the best financial rewards for our members of all the credit unions we considered merging with.
Both credit unions share a dedication to members, employees, and the community, and share a common vision for the future of the combined credit union.
WHO IS SIOUXLAND?
Siouxland Federal was originally founded in 1967 as a Nebraska state-chartered credit union. In 1988, they received their federal charter and now serve over 20,000 members across counties in Iowa, Nebraska, and South Dakota. They have 6 branch locations – 4 locations in Sioux City, Iowa, 1 location in Nebraska, and 1 location in South Dakota.
They operate with shared values: respect, attention, accuracy, efficiency, appreciation, and education. They are a team of dedicated people helping people be financially successful.
WHAT DOES THIS MERGER MEAN FOR MEMBERS?
Merging with Siouxland provides us the opportunity to increase our member and community impact through increased branch locations and expanded product and service offerings to our membership.
Additional & Enhanced Products and Services
There are several products and services that Siouxland offers that will be available to our members, including additional business checking and commercial lending, instant issue debit cards at its South Sioux City, NE branch, debit card rewards, Apple Pay and Samsung Pay, additional mortgage products, Visa Card with rewards, advanced online account opening and loan application and origination, Indirect Auto lending, Debit Card security and notifications, additional share certificates, personal financial management, along with great online and mobile banking solutions, to name a few.
Increased Member Access/Convenience with a 24/7 Contact Center
With a 24/7/365 contact center, and a more robust online and mobile banking platform to enhance the virtual banking experience, combined we would be able to serve more members with less wait times, and even more convenience in the future. We would also go from 1 branch to 6 branches.
Same knowledgeable, friendly employees
Both organizations are committed to making sure members receive top-notch service from our team members.
More Responsive to Evolving Financial Needs
This partnership would allow the credit union to better anticipate and meet the financial needs of members in a competitive financial services industry.
Share Adjustment or Merger Distribution
Midwest’s board of directors believes it’s important to recognize and reward our members for their loyalty to the credit union and have determined to distribute a portion of the credit union’s net worth subject to certain terms and conditions outlined in the notice to members, and of course regulatory and member approval. Please see the official notice to members for more information.
WOULD MY ACCOUNTS AND RATES BE AFFECTED?
There would be no immediate effect on your accounts. The rates on fixed-rate loans and certificates would remain the same until the end of their existing terms. Other products would adjust as normal due to market conditions and/or according to their governing loan documents. At this time, there is nothing you need to do. As we move to integrate our accounts into Siouxland’s operating system, we would work to ensure a smooth and seamless integration for our members. We would provide additional communication, disclosures, and instructions to guide you through this process, as we get closer to conversion. To learn more about Siouxland Federal Credit Union click here.
WOULD MY ACCOUNTS CONTINUE TO BE FEDERALLY INSURED?
Yes. Rest assured that your savings with the combined credit union will continue to be federally insured by the National Credit Union Share Insurance Fund (NCUSIF). Information regarding NCUA insurance, and a calculator to help determine your coverage, is available at www.mycreditunion.gov/estimator.
WOULD YOU CLOSE BRANCHES?
We anticipate that Midwest’s branch would remain open through system integration, which is anticipated to be the end of September, 2023. We would provide additional communication to guide you through this process, as we get closer to this future date. Once legally combined, you would have access to Siouxland’s 6 existing branches, 4 of which are local to us in Sioux City, IA.
WOULD I CONTINUE TO GET THE SAME SERVICE AND ATTENTION?
Yes. Both credit unions are committed to providing high levels of service for members and this would continue to be a focus for the combined credit union.
WOULD THE FIELD OF MEMBERSHIP CHANGE?
The combined credit union’s field of membership will include the existing fields of membership of Midwest and Siouxland, allowing us to serve even more members.
WOULD THE CHANGE IN THE FIELD OF MEMBERSHIP AFFECT MY MEMBERSHIP?
All Midwest members would automatically become members of the combined credit union. Once a member, always a member.
WOULD EMPLOYEES BE RETAINED?
Both credit unions are committed to retaining talented and dedicated employees. The desire is to retain existing team members that want to remain with the organization, and there would be a concerted commitment and effort to do just that.
WHAT WOULD OUR NAME BE?
Once legally combined, the combined credit union will retain the Siouxland Federal Credit Union name.
WHO WOULD LEAD THE ORGANIZATION?
Joel Steenhoven, current President/CEO of Siouxland would be the President/CEO of the combined credit union, and Paddy Friedrichsen, Midwest’s President/CEO would continue serving the combined organization until she retires in late 2023.
DO MEMBERS HAVE A SAY?
Yes. The proposed merger requires approval of a majority of the members of Midwest Community Credit Union who vote on the proposal. You will receive formal notice of the ways you can vote on the proposed merger, and details regarding a member meeting a short time following regulatory approval.
WHAT IS THE MERGER PROCESS?
The proposed merger requires three approvals: approval of the Board of Directors of both credit unions; approval from regulators; and the approval of a majority of the members of Midwest Community Credit Union who vote on the proposal. The Board of Directors for both credit unions unanimously approved the proposed merger in December 2022.
The credit unions have now submitted their applications for regulatory approval, upon receipt of regulatory approval members will have an opportunity to vote. The official notice, and ballot along with instructions on how to vote, and the date of the special meeting will be sent to you shortly after regulatory approval is received.
WHEN WOULD THE MERGER BE COMPLETE?
The proposed merger would be completed sometime after receiving regulatory and Midwest Community Credit Union member approval. The boards of both credit unions currently believe that would be sometime around Summer 2023 at which time we would legally become Siouxland Federal Credit Union. However, the process of fully integrating our systems would extend into the later part of 2023.