Credit unions to merge Walla Walla Valley Federal Credit Union is poised to become part of Gesa Credit Union.
By VICKI HILLHOUSE of the Walla Walla Union-Bulletin
WALLA WALLA ¬--- Walla Walla Valley Federal Credit Union will merge with Richland-based Gesa Credit Union to create one institution with two local branches.
Members of Walla Walla Valley Federal Credit Union cemented the merger, endorsed last January by the board of directors, with a vote last week, said Lynne Kuntz, vice president of the branch at Second Avenue and Tietan Street. The existing Walla Walla Valley Federal Credit Union will operate as Gesa starting June 1, she said. Membership accounts will be converted to Gesa's system by Sept. 1.
The combined credit union will have assets exceeding $678 million, securing Gesa's position as the largest financial cooperative in Southeastern Washington and one of the state's five largest credit unions. Moreover, Kuntz said Walla Walla Valley Federal Credit Union members will benefit from the wider range of services available at the larger Gesa.
"We really do feel this is a win-win situation for both institutions, as well as the membership for both institutions," Kuntz said Tuesday.
She said Gesa offers a variety of services not currently available at the Walla Walla-based credit union, including bill pay services, mortgage lending and various levels of checking accounts and credit cards.
The opportunity to provide more services originally prompted senior management and the board of directors to consider the merger, credit union officials say.
James Gillard, president and chief executive officer of Walla Walla Valley Federal Credit Union, said with increasing costs of audits and other operational costs, the only way to extend more services would be to pass the costs to members.
Letters mailed out to members in March explained the situation.
"Although Walla Walla Valley Federal Credit Union is a well-managed credit union, its size and availability of resources has presented a barrier to offering an abundant variety of necessary services," the letter said.
Gillard said a merger with Gesa would be the "perfect marriage" of the credit unions.
Kuntz emphasized Tuesday that Walla Walla Valley Federal Credit Union is not in any financial trouble.
She said the two credit unions will work together to make as seamless a transition as possible. That includes retaining the current roughly 18 employees.
Kuntz said Gesa will also do its best to retain existing account numbers, a concern voiced by some of the 180 members who cast votes against the merger. The proposal received approval with 947 "yes" votes from members.
She said Gesa "may have to add a digit at the beginning or end" of the account numbers. However, the hope is to avoid any disruption to members. Consequently, Gesa will also pick up Walla Walla Valley Federal Credit Union's "club account" programs, which aren't currently offered at Gesa's Poplar Street branch.
The club accounts -- known as "Christmas Club" and "Vacation Club" ¬--- allow members to deposit up to $100 a month into the accounts for a better interest rate than a typical account.
That will be added to the full range of financial services offered at Gesa's branch at 1355 W. Poplar St.
Kuntz said internal changes will be made between now and June to prepare for the changeover. However, current Walla Walla Valley Federal Credit Union customers will not be able to use the Gesa branch until Sept. 1, when the computer conversion is expected to be complete.
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