Sky Federal Credit Union and On Tap Credit Union Announce Proposed Merger
Sky Federal Credit Union and On Tap Credit Union have announced their intent to pursue a merger that would bring together two community-focused credit unions with a shared commitment to members, employees, and the communities they serve.
The proposed combination would unite two financially healthy organizations with complementary geographic footprints and similar cooperative values. If completed, the merger would create a credit union with approximately $671 million in assets, more than 32,000 members, and eight locations across Montana and Colorado.
The organizations said the proposed merger is intended to strengthen their ability to serve members while preserving the local relationships and personalized service that are central to their respective credit union models.
The two credit unions currently operate in distinct geographic markets, with no overlapping branch locations. As part of the proposed transaction, no branch closures are planned. Members would continue to have access to local teams and existing branch locations while the organizations work toward combining their resources and capabilities.
Building on Two Credit Union Histories
For Sky Federal Credit Union, the proposed merger represents an opportunity to build on more than nine decades of service in Montana.
Sky Federal Credit Union has established longstanding relationships with members and communities across the state. The organization said maintaining those relationships and preserving the characteristics that have defined its local presence are important considerations as it evaluates the proposed partnership.
Dr. Daisy Romo, CEO of Sky Federal Credit Union, said the organization approached the potential combination with a focus on finding a partner whose values aligned with its own.
“For more than 90 years, Sky Federal Credit Union has been focused on serving our communities and helping our members thrive,” Romo said. “As we looked toward Sky’s future, it was important that any partnership honor who we are, where we come from, and the relationships we have built throughout Montana.”
According to Romo, the organizations identified similarities in their approaches to community service and member relationships.
“We found that same commitment to people and community at On Tap,” she said. “This partnership gives us an opportunity to preserve what makes Sky special while building additional strength and resources for generations of members still to come.”
The proposed transaction would therefore combine the resources of both institutions while seeking to retain the community-focused characteristics associated with their individual histories.
A Combination Focused on Members and Communities
Sky Federal Credit Union and On Tap Credit Union said their decision to explore a merger was influenced by similarities in their cooperative values and organizational cultures.
Credit unions operate under a member-focused cooperative model, and both organizations emphasized the importance of relationships, community involvement, and personalized financial service.
The proposed merger would allow the organizations to combine their resources and potentially increase their capacity to invest in areas that directly affect members.
These areas include digital banking, fraud prevention, cybersecurity, financial products and services, employee development, and community partnerships.
As financial services become increasingly digital, credit unions face growing requirements to invest in technology and security infrastructure. Digital banking platforms, cybersecurity capabilities, fraud detection, and other technology investments can require significant resources.
A larger combined organization could provide additional capacity for these investments while continuing to operate branches in the communities currently served by both credit unions.
No Branch Closures Planned
A key element of the proposed merger is the organizations’ current geographic separation.
Sky Federal Credit Union and On Tap Credit Union serve different markets, and their branch networks do not overlap. As a result, the organizations said no branch closures are planned as part of the merger.
This means members would continue to have access to their existing local branch locations as the proposed combination progresses.
The organizations also said that members would continue to be served by familiar local teams who understand the communities in which they operate.
Maintaining local relationships is particularly important for community-focused financial institutions, where members may value the ability to interact directly with employees who understand local economic conditions and individual financial needs.
The proposed structure is intended to combine the organizations’ resources without eliminating the local presence that has helped define their respective approaches to member service.
Expanding Investment in Financial Services
The combined organization would have greater resources to invest in products, services, technology, and employee capabilities.
Digital banking is one area where continued investment can help financial institutions meet changing member expectations. Consumers increasingly expect to manage accounts, transfer funds, make payments, apply for financial products, and access financial information through digital channels.
At the same time, the growth of digital financial services has increased the importance of cybersecurity and fraud prevention.
For credit unions, Sky Federal maintaining secure systems and protecting member information requires continued investment in technology, personnel, monitoring, and risk management.
The proposed merger could provide the combined organization with additional capacity to support these areas while maintaining its physical branch network.
The organizations also identified employee development as an area of potential investment. Training and professional development can help employees adapt to changes in financial technology, regulatory requirements, customer expectations, and banking practices.
Shared Cooperative Values
The proposed merger is also based on what the two credit unions describe as a strong cultural alignment.
Tracie Wilcox, President and CEO of On Tap Credit Union, said the similarities between the organizations became apparent during discussions about a potential combination.
“This opportunity began with people and culture,” Wilcox said. “What stood out most wasn’t what made our organizations different, but how much felt familiar.”
She added that both organizations have deep community roots and place importance on member relationships.
“We share deep roots in our communities, a commitment to our members, and a belief that relationships come first,” Wilcox said. “That alignment gave us confidence that together we can create even more opportunities for the members, employees, and communities we serve.”
The organizations said these shared values provide a foundation for combining their operations while continuing to focus on the needs of their respective members.
Supporting Financial Education and Community Initiatives
Beyond traditional banking and financial services, the proposed merger is expected to support continued involvement in community programs across Montana and Colorado.
Both credit unions have emphasized the importance of financial education, charitable giving, and local partnerships.
The combined organization would have an opportunity to continue investing in these activities across the communities served by both institutions.
Financial education can play an important role in helping consumers understand budgeting, saving, borrowing, credit management, homeownership, and other aspects of personal finance.
Community partnerships can also allow credit unions to support nonprofit organizations, schools, local initiatives, and other programs.
The organizations said their intention is to preserve and expand these community-focused activities as they move forward with the proposed merger.
More Than 160 Years of Combined Experience
Sky Federal Credit Union and On Tap Credit Union bring more than 160 years of combined experience serving members and communities.
That combined history is an important part of the organizations’ approach to the proposed transaction.
Rather than replacing one institution’s identity with another, the organizations have described the proposed merger as an opportunity to build on the histories of both credit unions.
For Sky Federal Credit Union in particular, preserving its Montana legacy is a central component of the proposal.
“This is about building on Sky’s legacy, not leaving it behind,” Romo said. “Our members, employees, and Montana communities are at the heart of this decision.”
The Sky Federal proposed combination would therefore seek to maintain the strengths and relationships developed over decades while providing the combined institution with additional resources for future growth.
Greater Scale Across Montana and Colorado
If completed, the merger would create a credit union with approximately $671 million in assets and more than 32,000 members.
The organization would operate across eight locations in Montana and Colorado, giving it a broader geographic presence while maintaining the existing branch network.
Greater scale can provide financial institutions with additional resources to invest in technology, products, compliance, security, employee development, and other operational priorities.
For members, the organizations said the combination could create additional opportunities while maintaining access to local service.
The absence of overlapping branches also provides the institutions with an opportunity to combine resources without plans for branch consolidation as part of the proposed transaction.
Maintaining Local Service During the Transition
Until the proposed merger receives the necessary approvals and is completed, Sky Federal Credit Union and On Tap Credit Union will continue operating as separate credit unions.
This means their existing operations, member relationships, and services will continue while the merger process moves forward.
The proposed transaction remains subject to regulatory approval and a vote of Sky Federal Credit Union members. These steps are part of the process required before the combination can be completed.
Members will therefore have an important role in determining whether the proposed merger moves forward through the required member vote.
The organizations have indicated that additional work will be required to bring their operations together if the transaction receives the necessary approvals.
The proposed merger between Sky Federal Credit Union and On Tap Credit Union reflects an effort by two community-focused financial institutions to combine their resources while maintaining their commitment to members and local communities.
With approximately $671 million in assets, more than 32,000 members, and eight locations across Montana and Colorado, the combined organization would have a larger operational platform and additional capacity to invest in financial services.
Areas such as digital banking, cybersecurity, fraud prevention, financial products, employee development, financial education, and community partnerships are expected to remain important priorities.
At the same time, the organizations have emphasized that the proposed combination is intended to preserve local relationships. Because the two credit unions serve distinct geographic markets, no branch closures are planned as part of the merger.
For Sky Federal Credit Union, the proposal represents an opportunity to build on more than 90 years of service in Montana. For On Tap Credit Union, the partnership provides an opportunity to combine its community-focused approach with Sky’s established presence and resources.
The proposed merger remains subject to regulatory approval and a vote by Sky FCU members. Until those steps are completed, both credit unions will continue to operate independently.
If approved and completed, the combination would bring together two organizations with more than 160 years of combined experience and a shared focus on cooperative financial services, local relationships, and community involvement. The organizations intend to use that foundation to develop a stronger platform for serving members and communities in Montana and Colorado in the years ahead.
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