The $140 million First Catholic Federal Credit Union in Taylor, Mich. and the $267 million Michigan Catholic Credit Union in Troy, Mich., said they recently received regulatory approval to merge and will assume the new name, Alliance Catholic Credit Union.
FCFCU members, by an overwhelming majority vote, approved a plan to merge with MCCU in October, the suburban Detroit credit unions said.
"We are very grateful that our membership supported this proposal," said Angela Millis, CEO of FCFCU. "We know that this merger positions the combined organization to serve the Catholic community throughout Southeast Michigan and the Detroit metropolitan area. It provides an opportunity for expansion offering a positive move for members of both credit unions.”
FCFCU and MCCU were each founded in a single parish over a half-century ago. Both credit unions have grown organically and through mergers to become full-service financial institutions. FCFCU grew its assets to $140 million and three retail locations serving 14,000 members, while MCCU has surpassed the $250 million mark in total assets with six branches serving 32,000 members.
However, both credit unions have faced financial challenges over the past few years. FCFCU’s loan income has declined from $5.5 million in 2008 to $4.2 million in 2011, according to NCUA financial reports. In the same years, the credit union’s investment income has dropped from $2.2 million to $1.3 million. Though FCFCU lost $3.3 million in 2009, the credit union showed small to moderate gains in 2010 and 2011.
MCCU lost $9.4 million from 2008 to 2010, according to NCUA financial reports, but made $1.9 million in 2011, and as of September 2012, posted a positive income of $2.7 million.
The new credit union, Alliance Catholic Credit Union, will maintain the current branch network with integration of member accounts 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 the opportunity to provide both new and enhanced services to current and future members of the Catholic community,” said Rob Grech, president/CEO of MCCU. “With expanded credit union branch locations, we look forward to making a greater impact on our community together as a newly combined organization.”