The members of NW Iowa Credit Union in Le Mars have voted down a merger with Siouxland Federal Credit Union in South Sioux City, Neb., a rarity in the industry and possibly the only time in memory such an event has occurred.
“I’ve never heard of a merger going to a vote and being defeated,” said Chip Filson, a 40-year veteran of the industry and cofounder of the consultancy Callahan & Associates. “There have been a number of mergers that have been announced and then pulled back…but I’ve never heard of a merger that went down by a vote, particularly with all of the factors that favor the board and management and the very short time frame that members with concerns might have to create an alternative scenario.”
The collapse of the deal is remarkable not just for its rarity but because it reflects yet another way the pandemic has upended credit union operations.
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