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Wednesday, 14 October 2015 10:43

Lake Michigan CU, United Federal CU to merge, form $6B credit union

Written by  MiBiz Staff
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GRAND RAPIDS — Executives from Grand Rapids-based Lake Michigan Credit Union and United Federal Credit Union of St. Joseph said today that they plan to merge their two organizations to form a mega credit union with more than $6 billion in assets spanning 78 locations in seven states.

The deal, which was unanimously approved by the boards of directors at both organizations, is expected to close by year’s end, subject to regulatory approval.

Combining the two credit unions is not expected to result in senior staffing changes or branch closures, according to a statement. The locations will retain their current branding, although United Federal Credit Union will change its name to United Credit Union as it merges into Lake Michigan Financial’s state charter.

Upon completion of the merger, the organization will serve about 500,000 members and employ 1,400 people. The merged credit union’s mortgage services portfolio will total more than $8 billion.

LMCU President and CEO Sandy Jelinski will retain her titles after the close of the deal. UFCU President and CEO Gary Easterling had previously announced his retirement, but he will stay on with the organization through the transition.

“Our similar cultures and complementary geographies and service strengths make this combination a natural fit,” Jelinski said in a statement.

The merger creates one of the top 20 largest credit unions in the country as measured by total assets and net loans, according to a statement. It will position the organization to offer more products and services and enhanced technology capabilities.

“We view this as a tremendous opportunity for our employees and our members to combine with another great organization that will significantly expand our potential for mutual future success,” Easterling stated.

Read 4515 times Last modified on Wednesday, 14 October 2015 11:41

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