The $1.9 billion United Federal Credit Union in St. Joseph,Mich. said Tuesday it intends to merge into the $3.8 billion LakeMichigan Credit Union.

The proposed consolidation will make Lake Michigan CU the largest cooperative in the Great Lakesstate and one of the top 20 credit unions by assets and members inthe nation.

Sandy Jelinski, president/CEO of the Grand Rapids, Mich.-basedLake Michigan CU, will serve as the president/CEO of the mergedcredit union. Gary Easterling, who announced his retirement in April, willremain involved during the transition, according to a jointprepared statement.

The combined financial institution will manage nearly $6 billionin assets and more than $8 billion in its mortgage servicing,operate 78 locations across seven states and employ 1,400people.

In addition to Michigan, United FCU operates locations inIndiana, Arkansas, North Carolina, Nevada and Ohio.

The merged credit union will also serve a membership of morethan 395,000.

Once merged, the combined organization said it does notanticipate any changes to staff, senior management or branchoffices, according to the prepared statement.

Though the credit unions will retain their brands, there will beone slight change: United FCU will become United Credit Union because it willoperate under Lake Michigan CU's state charter.

“We are very excited to merge with Lake Michigan Credit Union,”Easterling said. “Both the UFCU board and LMCU board were unanimousin their approval of this merger. We view this as a tremendousopportunity for our employees and our members to combine withanother great organization that will significantly expand ourpotential for mutual future success.”

Pending state and federal regulatory approvals, the merger isexpected to close at the end of the year.

“Our similar cultures and complementary geographies and servicestrengths make this combination a natural fit,” Jelinski said.“Both of our organizations are dedicated to delivering the verybest to our members, and we are proud to continue our support ofimportant events in our communities.”