Maine State Credit Union in Augusta and Midcoast Federal Credit Union in Freeport, Maine, have announced plans to merge under the Maine State brand.
The deal has been approved by both credit unions’ boards but is still subject to approval from state and federal regulators. The $206 million-asset Midcoast FCU's membership must vote on the merger as well. The deal is expected to be completed by mid-year in 2021, bringing the combined institution to more than $710 million in assets, serving over 46,000 members.
“By joining forces with Midcoast Federal Credit Union, we will be able to provide you with an even higher level of member service than we currently do,” Maine State said in an FAQ on its website. “We will be able to offer you new products and services, which will allow us to grow and remain strong.” Expansion into two additional counties is also expected, bringing membership eligibility to three full counties and consumers in eight additional cities and towns.
Maine State CEO Tucker Cole will lead the combined institution while Midcoast FCU CEO Joe Gervais will serve as president. The boards of each institution will be combined. No job losses are planned.
The $506 million-asset Maine State earned just under $393,000 during the first half of 2020, compared with nearly $1.5 million during the same period last year, according to call report data from the National Credit Union Administration. Midcoast posted earnings of about $237,000 through June, down from about $782,000 at the end of the second quarter in 2019, according to NCUA data.
