The members of the $11 million Ecolab Credit Union in St. Paul, Minn., voted to merge Tuesday with the $844 million SPIRE Credit Union in Falcon Heights.
According to a joint statement released Wednesday, 96% of EcoLab CU members voted to approve the consolidation that will take effect Oct. 1.
Like many small credit unions, Ecolab CU that served 2,241 members, was experiencing financial challenges.
Ecolab saw loan income slide from $420,196 in 2011 to $271,005 by the end of 2015 with declining net income from 2011 to 2013, including net losses of $43,606 in 2014 and $25,591 in 2015, according to NCUA financial performance reports.
The credit union posted a net worth of 9.78% by the end of the second quarter this year, down from a net worth of 10.15% in June 2015. Its ROAA at the end of the 2016 second quarter was 0.46% compared to 0.25% at the end of the second quarter last year.
“To maintain and grow the long-term value for the Ecolab Credit Union membership, the leadership recognized the need to enter into a partnership with SPIRE,” Ecolab President/CEO, Sandra Wiederholt, said. “This partnership is a win for everybody.”
Founded in 1963, the credit union served past and present employees of Ecolab, a St. Paul-based global company that provides water, hygiene and energy technologies and services.
