Columbia Basin credit union merger approved

All employees would retain jobs if members approve

COLUMBIA BASIN — If board members of a resident credit union have their way, they're going to get an expanded coverage area and a name change.

A proposed merger between Columbia Basin Federal Credit Union and Horizon Credit Union recently received unanimous approval by the CBFCU board of directors. The vote follows the successful completion of a thorough due diligence process by both credit unions.

Mark Neumann, president and CEO of the Columbia Basin Federal Credit Union, explained that both boards voted to move forward with the merger process.

In order for the CBFCU to become part of Horizon Credit Union, regulatory approval has to be received. The required application packets have been submitted to state and federal regulators, and Neumann said that he doesn't foresee any issues arising.

Once regulatory approval is received, a meeting is required for credit union members and a special vote, giving members the opportunity to say yes or no to the proposal from the boards to move forward with the merger.

"Ultimately, it comes down to the decision of the membership," Neumann said, noting that the vote and meeting will probably take place at some point in mid-November. If the membership votes positively, after that vote is certified, the credit unions are hoping to merge Jan. 1, 2006.

At that point, CBFCU would operate under the Horizon Credit Union name. The combined credit union will continue to be headquartered in Spokane Valley. The Moses Lake facility will transition into a regional headquarters and house important functional and administrative areas.

Neumann said credit union members would get access to broader service offerings and an extended branch network throughout the region, amongst other changes.

Both the CBFCU and Horizon are financially strong organizations that share a common vision and common values, Neumann said. While mergers are often perceived as a negative, "in this case, this is really two strong entities coming together to do more together than we could do individually," he said.

"I think that's really demonstrated by the fact that there's been a commitment to retain all the employees of this credit union," he continued. "With the combined organizations, we expect good long-term growth in the community here, and we think, in time, we'll not only be having the employees we have now going through this, same faces, we'll actually have new faces and create new employment opportunity in the region."

Under the merger, Neumann would serve as vice president of retail delivery, while Tom Di Luzio, president and CEO of Horizon, will serve in that capacity.

CBFCU presently has branches in Moses Lake and Ephrata, but in switching to Horizon, members would be able to use any of the Horizon branches, which would number a total of 17 if the merger is finalized, through eastern Washington and northern Idaho. There would be no branch closures as a result of the merger.

"That's the largest branch network of an eastern Washington-based credit union," Neumann said.

He added that Horizon product and rate offerings are for the most part equal or better to CBFCU, but any rate changes would be determined on an individual basis, as sometimes rates are determined by what products a member might choose.

"The big thing that we continue to see as probably one of the biggest requests from our members, I think, of all credit unions, is expanded convenient services and convenience access," Neumann said. "That's probably one of the most striking and prominent benefits that members are going to receive, is that issue, the expansion of convenience."

Horizon has also committed to deploying or building what Neumann called one of their flagship branches in Moses Lake. He noted that the CBFCU's current facility on Stratford Road has a lease expiring in the near future.

"We've kind of grown past our facility at this point in time, and so they really want to show their commitment that the partnership will bring to the community," Neumann said of Horizon. While dependent upon securing a location, Neumann said that the facility would be beginning construction in 2006.

CBFCU members began receiving notification of the merger Thursday.

"The feedback that we've heard has been overwhelmingly positive from the members," Neumann said. "They're excited about the additional benefits that a partnership with Horizon can bring to them."

Formed in 1940 to serve the employees of the Bureau of Reclamation, the CBFCU now serves more than 7,400 members and holds over $48 million in assets. With over 28,000 members Horizon Credit Union is a $268 million asset, full-service, financial institution, operating 14 branches across the Pacific Northwest.