Deteriorating financial condition, diminishing market and membergrowth and losing sponsor support force many credit unions tomerge.

But there are some credit unions that don't merge out ofnecessity. Instead, equally strong credit unions such as the $51 million PreferredFederal Credit Union in Greenville, Mich. and that $88 millionGrand Valley Co-op Credit Union in Grand Rapids, Mich., havedecided to merge for a different reason.

Both credit unions are not merging because of capital issues orlack of growth, explained Robert Shane, executive vice presidentand chief operating officer for Grand Valley Co-op.

Instead, he said, both organizations understand they can meetthe needs of members in western Michigan more effectively as onelarger credit union rather than as two separate credit unions.

If approved by members and regulators, the 10,289-memberPreferred FCU in Greenville, Mich. will merge into the14,085-member Grand Valley Co-op CU in Grand Rapids, Mich., by July1.

Although Preferred FCU is merging into Grand Valley Co-op, thenew name of the credit union will be Preferred Credit Union.

“We're going to take advantage of the state charter becauseMichigan is a very friendly credit union state, and as PreferredCredit Union we'll have a whole lot more opportunities to reachmembers in the community and in the surrounding communities,” Shanesaid.

Serving western Michigan, both credit unions have strongfinancials and membership growth. Grand Valley Co-op's net worth is11.42% and Preferred FCU's net worth is 9.57%. Grand Valley'smembership has grown from 13,882 in 2011 to 14,127 in 2012. Preferred FCU's membership has increased from 10,155 in 2011 to10,238 in 2012.

Grand Valley's 34 employees and Preferred's 24 employees willretain their jobs and no branches will be closed, the credit unionssaid.

“The beauty to me in this (merger) endeavor we are workingthrough is that we are asking the questions on what is the best wayto do things – not as Grand Valley would do it or how Preferredwould do it, but rather how we do it as a new organization,” saidShane. “And that is a pretty exciting opportunity.”