PARCHMENT, Mich. First Community FCU on Monday announced plans to combine with E&A CU in Port Huron to create Michigan’s ninth billion-dollar credit union.
First Community, located about 10 miles north of Kalamazoo, was chartered in 1938 as Parchment Employees FCU. Its membership consisted of the Kalamazoo Vegetable Parchment Company. It has more than $700 million in assets. First Community reported $1.2 million in net income for the first quarter of 2013 and a $3.1 million net for 2012. It had net worth of almost 13% at March 31.
E&A, which has $280 million in assets, was chartered in 1935 as St. Clair County Teachers CU. The name was changed to Educational Associates Credit Union in the 1970s. The credit union reported $1.1 million in net income in the first quarter and $5.4 million for 2012. It had net worth of more than 10% at March 31.
First Community has 17 branches in Michigan, Illinois and Wisconsin. E&A has four branches in Michigan, in Port Huron, Fort Gratiot, Marysville and New Baltimore.
Cheryl DeBoer, president of First Community, will become the president and CEO of the new entity, while Janice Rose, head of E&A, will take on the role of chief community relationship officer. In this role, Rose will oversee the focus on participation in the community.
The merger agreement calls for the board of the new entity to have nine members six from First Community and three from E&A. The number of board members is proportionate to each credit union’s assets, they said.
