Lake Michigan Credit Union in Grand Rapids, Mich., and United Federal Credit Union in St. Joseph, Mich., have agreed to combine.
The merger will create the nation's 19th-largest credit union, the institutions said in a news release. The $3.8 billion-asset Lake Michigan CU has about 257,000 members and United FCU, with $1.9 billion in assets, has about 139,000 members.
The credit unions expect the merger to close by the end of the year, pending regulatory approval. The boards of both institutions unanimously approved the deal. United FCU will be merged into Lake Michigan's charter, and only United FCU's members are required to vote on the deal.
“Our … complementary geographies and service strengths make this combination a natural fit,” Sandy Jelinski, chief executive Lake Michigan, said in the release.
The combined institution will hold about $8 billion in its mortgage servicing portfolio and operate 78 locations in Michigan, Arkansas, Indiana, North Carolina, Nevada and Ohio.
The credit unions do not plan to reduce staff or close offices after the combination. Senior management from both credit unions will remain with the merged entity. Jelinski will serve as president and CEO; Gary Easterling, CEO of United FCU, had previously announced his pending retirement.
United FCU will change its name to United Credit Union after the merger closes.
