The $704 million, 71,831-member First Community Federal Credit Union in Parchment, Mich., and the $278 million, 35,370-member E & A Credit Union in Port Huron, Mich., said Tuesday their boards have agreed to merge to form a new credit union that will operate under a new name.
Pending member and regulatory approvals, the proposed merger—expected to be completed sometime later this year—will create a credit union ranked in the top 3% in the nation, based on size, with more than 100,000 members and assets of nearly $1 billion, the credit unions said.
The new entity will have more than 375 employees and operate 21 branches in Michigan, Illinois and Wisconsin.
Plans call for the new credit union to operate under a new name, which will be announced at a later date. The headquarters will remain in Parchment, a suburb of Kalamazoo, Mich., in south-central Michigan. Port Huron is northeast of Detroit on the Canadian border at the southern end of Lake Huron.
FCFCU President/CEO Cheryl DeBoer will assume her leadership role in the new credit union and E & A President/CEO Janice Rose will become chief community relationship officer, according to a prepared statement from FCFCU.
There are no anticipated layoffs as a result of this merger, the credit unions said. All employees of both credit unions are expected to retain existing or similar positions along with additional opportunities for advancement. Members will experience minimal changes to their account and no branch offices are scheduled to close.
“This partnership will allow our credit union to compete with even greater success in the financial services industry, continue to attract new members, offer enhanced services to members, and provide employees opportunities for career growth,” DeBoer said.
“The collaboration will provide the capital and human resources, expertise and product range of a much larger organization, while enhancing our outstanding credit union model as a state-chartered, not-for-profit financial institution,” she said.