Greater Milwaukee CU Plans Merger After 90 Years
The $14.2 million Greater Milwaukee Credit Union in West Allis, Wis. – chartered in 1923 when the U.S. credit union movement was gaining popularity – will merge with the $1.9 billion Summit Credit Union in Madison, Wis., on Dec. 1, if its members approve.
“After extensive research and consideration, we chose Summit Credit Union due to its leadership, innovation and dedication to the well-being of its members, employees and to the communities in which it serves,” said Lori Pook, president/CEO of GMCU.
The merger is contingent on final approval from GMCU’s membership as well as regulators. Members will vote on the merger question Sept. 25 during a special meeting, Pook said this week.
“We believe that our members will be very satisfied with this move and the added convenience and increased value it will provide,” Pook said.
Like many small credit unions, GMCU has had financial challenges over the past five years with declining loan, fee and investment income. Nevertheless, the cooperative has recorded a net worth of 14.49%, which is above peer average of 12.16%, as of June 2013, according to the NCUA.
From 2009 to 2012, however, the credit union has posted total net income losses of $152,847. Additionally, as of June 30, 2013, GMCU posted total net income losses of $22,752, according to NCUA financial performance reports.
Pook said GMCU’s employees will continue their employment with Summit CU and its office will remain open.
Once the merger is approved, Pook will oversee the transition of the merger and become a Summit CU employee.
When GMCU was chartered 90 years ago, it opened as the Milwaukee Federal Employees Credit Union. For its first 73 years, the credit union served employees of the U.S. Postal Service and other federal employees.
In 1995, members voted to expand their charter to a community credit union. Shortly after the charter change, the credit union’s name was changed to Greater Milwaukee & Government CU and then changed again to Greater Milwaukee CU, according to the cooperative’s website.
Currently, GMCU serves nearly 2,000 members.