Members of the $266 million Advantage One Credit Union in Brownstown, Mich., will vote in July on whether to merge with the $483 million LOC Credit Union in Farmington, Mich.
In its merger documents filed with the NCUA, Advantage One said the decision to consolidate was not made because of financial distress as both credit unions are financially strong and well capitalized. Instead, the Advantage One Board of Directors said it made a strategic decision to position both credit unions for long-term success in a competitive marketplace that has become increasingly complex, technology driven and highly regulated.
If approved by regulators and members, the combined financial cooperative will manage more than $749 million in assets with nine locations and 151 employees who will serve over 45,000 members.
The combined organization will be led by LOC President/CEO Stephen Grech until his anticipated retirement date. Advantage One President/CEO Chris Corkery will serve as president.
In addition, all of Advantage One's board members have been invited by LOC Credit Union to serve on the board of the combined cooperative.
"This merger allows us to deliver products and services in a more efficient manner while enhancing the overall experience for our members through an expanded retail banking footprint," LOC Board Chair Paul Renko said. "Both credit unions are on the same core processing and digital banking systems, which will lead to a more seamless integration and provides opportunities to achieve economies of scale while also leveraging our state-wide field of membership."
If the merger is approved, LOC will change its name to Advantage One.
"While both credit unions are financially strong and considered well-capitalized, our industry continues to demonstrate a need for fast-paced growth in technology," Advantage One Board Chair Richard Lindemann said. "We also recognize that as technology evolves, so do the expectations that our members have of us. We believe LOC Credit Union shares similar beliefs and strategy as ours to help us remain competitive."
Peter Strozniak can be reached at peter.strozniak@arc-network.com.
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