ST. JOSEPH, Indiana — Lake Michigan Credit Union and United Federal Credit Union announced today that they plan to join forces in what would be the largest merger in credit union history.
The combination of Lake Michigan Credit Union, based in Grand Rapids, and United Federal, headquartered in St. Joseph, would create one of the nation’s top credit unions.
It would have about 500,000 members, more than $6 billion in total assets and more than $8 billion in its mortgage-servicing portfolio. Those numbers would put the credit union among the nation’s 20 largest in terms of assets and net loans.
“I am extremely pleased to announce the merger of these two highly regarded credit unions,” said Sandy Jelinski, president and chief executive officer of Lake Michigan Credit Union.
“Our similar cultures and complementary geographies and service strengths make this combination a natural fit,” she said in a statement. “Both of our organizations are dedicated to delivering the very best to our members, and we are proud to continue our support of important events in our communities. This is an exciting opportunity for the employees and members of both organizations to build the absolute best credit union in the country.”
No changes in staffing or branch offices are expected to happen as part of the merger. The combined organizations will employ 1,400 people in 78 locations in seven states.
Senior management from both organizations will remain in place as well. Jelinski, as president and CEO, will head the merged credit union. Gary Easterling, the president and CEO at United Federal, previously announced his plans to retire, though he will remain involved during the transition.
The existing operating locations will retain their current name and branding, too. United Federal Credit Union will become United Credit Union when the merger is complete and both credit unions are consolidated under the Lake Michigan Credit Union state charter.
“We are very excited to merge with Lake Michigan Credit Union,” Easterling said in a statement, adding that both credit union’s board members unanimously approved of the merger.
“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,” he said.
In addition to a larger presence, the merger will make more services and technology available to credit union members.
The deal is expected to close by the end of this year, subject to the customary closing conditions and regulatory approvals.
