Michigan Merger: SIR Federal Credit Union to Consolidate with Honor Credit Union
The $77 million, 10,545-member SIR Federal Credit Union in Negaunee, Mich., will merge with the $463 million, 40,016-member Honor Credit Union in Saint Joseph, Mich., according to an Honor CU statement.
Pending approvals from state and federal regulators as well as the SIR FCU membership, the merger is scheduled for completion in April 2014, Honor CU said.
Both credit unions are financially sound. SIR FCU posted a net worth of 9.16% while Honor CU recorded a net worth of 10.49% as of June 30, according to NCUA financial performance reports.
Loan income at Honor CU grew from $9.6 million in 2008 to $14.5 million in 2012, while loan income at SIR FCU posted a slight decline from $3.2 million in 2008 to $2.8 million in 2012, according to NCUA financial performance reports. Both credit unions recorded strong increases in fee and investment income.
Chartered in 1948, SIR FCU has about 37 employees and operates three branches in Michigan’s Upper Peninsula.
“The membership will have more products/services to choose from and the cost of complying with the new federal regulations won’t take away from our bottom line,” SIR FCU said in a statement to its members.
SIR FCU also said it plans to submit an application to become a state-chartered credit union.
Honor CU, chartered in 1934, has about 160 employees and operates 12 branches in western Michigan.
Post merger, SIR FCU’s branches will continue to operate and the cooperative’s employees will be retained, said Kaylee Williams, Honor CU’s public relations coordinator.
Ronald Lauren, president/CEO of SIR FCU, will become the northern division president for Honor CU after the merger is completed, Williams said.