University of Iowa Community Credit Union will change its name. And it will cost millions.

Kevin Hardy | The Des Moines Register

Show Caption Hide Caption 'A world without credit unions would be a scary place' Patrick Jury, CEO of the Iowa Credit Union League, speaks before hundreds of people gathered on the steps of the Capitol to rally against increased taxes on credit unions in the state of Iowa on Wednesday, March 7, 2018, in Des Moines.

The University of Iowa Community Credit Union will spend about $2.5 million to change its name.

After years of controversy, the board of the largest Iowa-based financial institution voted unanimously on June 9 to look for a new name — one that doesn't include the University of Iowa.

The Iowa legislature and Gov. Kim Reynolds approved an end-of-session budget bill with an amendment that bans Iowa credit unions from using the names of state universities in their titles.

More: Iowa's biggest credit union may have to change name because of GOP budget bill

The move was welcome news for Iowa bankers, who claim that the UICCU, aided by its nonprofit status, unfairly competes for business by using the name of the state's flagship university, despite having no affiliation with the school.

Jeff Disterhoft, president and CEO of the credit union, announced the name change in an email to members Tuesday.

"Please know a change in our name does not change the commitment to our member-owners," he said. "No matter what our name becomes, we remain committed to providing extraordinary service to you and helping all of our members meet their financial goals for generations to come!"

It will take about $2.5 million — about 0.9 percent of the institution's projected annual revenue — to change out signage, documents and other materials, according to the credit union.

The North Liberty-based organization has grown to become the state's largest credit union with 16 branches and 430 employees.

Disterhoft, who could not immediately be reached for comment late Tuesday, said the institution hopes to change its name by April 2019, as prescribed in the legislation.

UICCU will accept suggestions for a new name online. But the credit union noted it does not need a vote of members to select a new title.

"We will develop a name that is simple and not geographically constraining," it said online. "We will work to create a name that is welcoming and reflects the cooperative’s values and heritage.

UICCU officials sought to change the name to Optiva Credit Union in 2007, but members nixed the idea in a vote.

The credit union has been a consistent target among bankers, who waged a wider campaign this year to raise taxes on nonprofit credit unions. A credit union tax hike made it into one tax bill, but ultimately did not receive final approval.

More: Iowa bankers push to end credit unions' 'free ride'

The Iowa Board of Regents has also taken issue with UICCU's name.

Board members in February argued that the institution's name confused customers because it has no formal affiliation with its namesake university.

More: Regents: Credit union's name could risk University of Iowa's reputation

The credit union estimates that only 25 percent of its 175,000 members are staff, students, or alumni of the University of Iowa.

Regents approved a new policy on Thursday prohibiting university trademarks from becoming part of unassociated group names, according to the Cedar Rapids Gazette.