The $140 million First Catholic Federal Credit Union in Taylor,Mich. and the $267 million Michigan Catholic CreditUnion in Troy, Mich., said they recently received regulatoryapproval to merge and will assume the new name, Alliance CatholicCredit Union.

FCFCU members, by an overwhelming majority vote, approved a planto merge with MCCU in October, the suburban Detroit credit unionssaid.

”We are very grateful that our membership supported thisproposal,” said Angela Millis, CEO of FCFCU. “We know that thismerger positions the combined organization to serve the Catholiccommunity throughout Southeast Michigan and the Detroitmetropolitan area. It provides an opportunity for expansionoffering a positive move for members of both credit unions.”

FCFCU and MCCU were each founded in a single parish over ahalf-century ago. Both credit unions have grown organicallyand through mergers to become full-service financialinstitutions. FCFCU grew its assets to $140 million and threeretail locations serving 14,000 members, while MCCU has surpassedthe $250 million mark in total assets with six branches serving32,000 members.

However, both credit unions have faced financial challenges overthe past few years. FCFCU's loan income has declined from $5.5million in 2008 to $4.2 million in 2011, according to NCUAfinancial reports. In the same years, the credit union's investmentincome has dropped from $2.2 million to $1.3 million. Though FCFCUlost $3.3 million in 2009, the credit union showed small tomoderate gains in 2010 and 2011.

MCCU lost $9.4 million from 2008 to 2010, according to NCUAfinancial reports, but made $1.9 million in 2011, and as ofSeptember 2012, posted a positive income of $2.7 million.

The new credit union, Alliance Catholic Credit Union, willmaintain the current branch network with integration of memberaccounts and services offered by each credit union. The executives,management and staff of each credit union will retain their jobs,the credit unions said.

“Becoming a larger, progressive credit union offers theopportunity to provide both new and enhanced services to currentand future members of the Catholic community,” said Rob Grech,president/CEO of MCCU. “With expanded credit union branchlocations, we look forward to making a greater impact on ourcommunity together as a newly combined organization.”