The $370 million Kellogg Community FCU in Battle Creek, Mich. said Tuesday its planned merger of the ailing $5 million St. Joseph Valley Community FCU in Three Rivers, Mich., has won member approval and should be completed by the end of the year.
The 1,500-member Three Rivers credit union lost $82,000 in 2010 and $140,000 in the first half of 2011 and has a net worth ratio of 3.4%
Robert Dutka, St. Joseph Valley’s chairman, said his one-brand CU knew “it wanted to merge, taking the credit union to its next level,” and chose the 29,000-member Kellogg Community after looking at “a couple of financial institutions.”
A spokeswoman for St. Joseph Valley said its former president/CEO, Kristen Taft, “is no longer at the credit union” and that all comments on the merger would come from Kellogg management.
In a statement, Tracy Miller, president/CEO of Kellogg Community, said her credit union “is very excited about this partnership” which she said will bring added services to current St. Joseph Valley members.