Two of Michigan's largest credit unions, the $839 million NuUnion CU of Lansing and the $639 million Detroit Edison, charting a merger set to become effective next March are looking for possible future expansion into Ohio and Indiana, the CEO-designate said Monday.
The regional concept would be a natural move once the two Michigan CUs complete a consolidation described as a "partnership of equals" involving two healthy institutions each with about 8.5% capital, said Stephan L. Winninger, president/CEO of NuUnion.
The combined CU with a field of membership covering nearly all of central and southern Michigan from Lake Michigan to Lakes Erie and Huron will be called Lake Trust CU, a name that had been selected last June by Detroit Edison as part of a planned expansion and switch from its single sponsor status.
That followed the NCUA-engineered purchase/assumption by Detroit Edison of the failed $268 million Huron River Area CU of Ann Arbor two years ago.
"It's taken us that long to get our arms around Huron River, clear up the balance sheet and so now we have some well placed branches that fit well with our planned NuUnion merger," said William J. Thiess, CEO of Detroit Edison who will become president of the merged CU,, fourth largest in the state.
Merger discussions began last February as the two CUs realized economies of scale and efficiencies through a single entity, which would have 22 branches and 425 employees with no layoffs planned, the two CEOs said.
Despite Michigan's economic gloom, Thiess said both CUs have managed vigorous growth though "like everyone else we're experiencing the chargeoffs and delinquencies." Both CUs are expected to break even this year, said Winninger.
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