LANSING, Mich. – State regulators reported they have approved the combination of Midwest Financial CU, an ailing one-time $200 million Ann Arbor, Mich., credit union, into DFCU Financial, the state’s largest credit union.
The deal comes just as $2.7 billion DFCU is completing the integration of troubled Capital Community FCU, a one-time $320 million credit union based in Lansing, and as a growing number of the nation’s largest credit unions are expanding into new markets by acquiring troubled credit unions. Yesterday, Colorado state regulators said they have approved the acquisition of troubled Norbel CU by Texas giant Security Service CU. And two weeks ago, Virginia’s Chartway FCU agreed to acquire the assets of HeritageWest FCU, a one-time $330 million Utah credit union once known as Tooele FCU.
DFCU is among the nation’s largest, most well-capitalized credit unions that are being sought out by regulators to acquire troubled credit unions and Michigan is among the states, along with California, Nevada, Utah, Colorado and Florida, where a flurry of dealmaking is occurring.
The deal follows recent Michigan mergers of USA FCU and T&C CU to create Genisys CU; of Detroit Edison CU with Huron River Area CU, then with NuUnion CU to create Lake Trust CU; and of DFCU’s own acquisition of Capital Community FCU last year.
