A proposed merger of the $32.8 million Eaton County Educational Credit Union in Charlotte, Mich., with the $2.3 billion Michigan State University Federal Credit Union in East Lansing has been approved by the credit unions’ boards.
The credit unions said Thursday they are seeking approvals from ECECU’s members as well as state and regulatory agencies.
“Due to the current economic climate and recent financial legislation, many smaller credit unions are finding it impossible to earn income and grow financially,” said Ken Huber, ECECU’s treasurer/manager. “In order to best serve our members, ECECU’s board of directors recognized that we needed to partner with another credit union.”
Although ECECU’s assets have been steadily increasing from $26 million in 2008 to $32 million in 2012, its income has been decreasing.
The 3,900-member credit union’s year-to-year loan income has dropped from $815,874 in 2008 to $704,568 in 2011, according to NCUA financial performance reports. In addition, ECECU has seen declines in its investment and other income streams, those reports show.
“MSUFCU and ECECU have a shared commitment to helping members achieve financial success, and I am excited for the new opportunities this proposed merger provides for members of both credit unions,” said Patrick McPharlin, president/CEO of the 169,000-member MSUFCU, the nation’s largest university-affiliated credit union.
“ECECU members will gain expanded account access and services along with greater financial strength and stability for their accounts, and the 11,000 MSUFCU members already residing in Eaton County will receive the added convenience of an established branch in Charlotte,” McPharlin said.
