Gaining its first presence in the Detroit market, the $190million American 1 Federal Credit Union of Jackson, Mich. announcedWednesday that it plans to merge the ailing $55 million PremierFinancial CU of Detroit.

The Detroit CU, which lost $1.7 million in 2010 and has beenunder 4% net worth, said it sought out American 1 as a mergerpartner based on its service record and “because of its provenhistory of financial stability and growth.” The combined CU willserve 50,000 members.

American 1 currently has nine central Michigan branches and“looks to continue our growth in the Detroit market,” said KristiLatoszewski, vice president of marketing and communications.

“This is an exciting opportunity for us to expand,” she said,noting that the CU is amenable to merger bids from other MichiganCUs where there is a fit.

Premier, in operation for 73 years, with two metro Detroitbranches and 7,000 members, has been serving employees of MichConand DTE Energy Co.

Its president/CEO, James Safian, said in a statement thatthe current environment has been “challenging to maintain thefinancial position and growth needed to provide the products,services and locations our members want and need.” The merger isdue for completion by late summer.