The $190 million American 1 Federal Credit Union of Jackson, Mich. is looking to gain a toehold in the Detroit market late this summer with its plans to merge with the ailing $55 million Premier Financial CU of Detroit.
The Detroit CU, which lost $1.7 million in 2010 and a similar amount in 2009 and has been under 4% net worth, said it sought out American 1 as a merger partner based on its service record and "because of its proven history of financial stability and growth." The combined CU will serve a 50,000 member base.
American 1 currently has nine central Michigan branches and "looks to continue our growth in metro Detroit," said Kristi Latoszewski, vice president of marketing and communications.
"This is an exciting opportunity for us to expand," she said, noting that the CU is amenable to merger bids from other Michigan CUs where there is a fit.
Premier, in operation 73 years, with two metro Detroit branches and 7,000 members, has been serving employees of MichCon and DTE Energy Co.
Its president/CEO, James Safian, said in a statement that the current environment has been "challenging to maintain the financial position and growth needed to provide the products, services and locations our members want and need."