Orofino Community Credit Union members considering merger

12-29-05

Orofino Community Credit Union members are considering the pros and cons of merging with Lewis Clark Credit Union which has its headquarters in Lewiston.

According to Rick Laam, OCCU Board treasurer, members have until Jan. 9, 2006 to submit their votes. In accordance with state law, any members who do not vote will be considered to have voted "yes" to the merger. A simple majority is needed for the merger to be approved.

OCCU's Board announced the merger plan Nov. 30 and members were mailed a letter describing the proposed merger along with a ballot. Ballots are also available at the credit union office. All 1,638 members are encouraged to cast ballots and express their decision in the matter. Members were also invited to a meeting Dec. 20 to discuss the merger and answer questions.

Laam said this is an advantageous time for the merger and it will be a win/win situation for both credit unions. OCCU is financially strong now, but with the ever changing complexity and competition with financial institutions in today's world it would decline. He said many of the older members with large accounts that have been the backbone of OCCU are dying and their families are withdrawing the funds and closing the accounts. That, however, is only one component, the other is that people are asking for services that OCCU is not able to provide such as:

• Home mortgage loans
• Home equity loans
• Credit cards
• Risk based loans

"People bank today like they shop for groceries," he said. They can pick and choose which financial institutions and go with those who have the best rates for the particular service to customize their financial situation. OCCU needs to look at that and provide personal service as the core so people are not just a number as they can become with larger financial institutions. They pride themselves on greeting everyone who comes in the door by name. It is part of their philosophy to realize that people go through hard times and that will impact their credit rating, but he feels that they know people and that they are good for the money they borrow, so they work with them.

OCCU's Board has been considering the option of merging and there have been opportunities to do so, but it has not happened because it is a difficult process and the other credit unions considered were not a good fit. The board feels that Lewis Clark Credit Union is a good fit because they are also a community credit union that is state chartered as such. That means there is a limiting factor already defined.

If the merger is approved, Lewis Clark Credit Union has guaranteed that there will always be an Orofino branch office and there will be no loss of jobs for the present staff. They have also expanded their board to allow for three members from OCCU. Perpetuation of those three positions is not guaranteed, because state law does not allow that, Laam said.

Though they have been telling members for five to six years that things would eventually need to change, the board did not come to the members first about this merger or ask about other options members may propose, because by law the Idaho State Department of Finance must approve it and the National Credit Union Administration (NCUA) be notified first. Then the members have the opportunity to vote on the merger.

If the merger is approved, Laam said that members will notice little difference when they walk into the office, except the name change which is required. There will be benefits for members including added financial stability and additional services offered by LCCU such as:

• Home equity loans
• Credit cards
• IRA accounts
• Online banking
• An upgrade of computers at OCCU

OCCU has $5.5 million in assets that will be joined to the $18.8 million that Lewis Clark Credit Union has. LCCU currently has 3,433 members. If the merger is approved, that will expand the membership to 5,071, according to information provided by OCCU.

Laam said there were two people that were very vocal about opposition to the merger when the meeting started, Neal Johnson and Dennis Thompson. Thompson said he had questions and felt like those had been answered to his satisfaction at the meeting. He still has some concerns, but not as many and he is okay with the merger. He wants to see the Orofino office stay open and Lewis Clark Credit Union has assured OCCU members that it will. Many of the customers at Barnett-Thompson finance their vehicles through OCCU. The merger will open the opportunity for more services. Johnson was out of town for the week and unavailable for comment.

The main office of Lewis Clark Credit Union will be at 1626 17th St. in Lewiston.