GRAND RAPIDS, Mich.–The proposed merger between $2-billion United FCU and $4-billion Lake Michigan Credit Union here—termed the “largest merger in credit union history”—may be called off.
In October, Lake Michigan Credit Union here and United FCU in St. Joseph, Mich., said they planned to combine to complete the biggest merger in CU history. However, CUToday.info has been told by sources that the consolidation will not happen.
When contacted by CUToday.info, Don Bratt, VP of marketing at Lake Michigan Credit Union, stated that a press release regarding the merger will be issued on Friday. He did not confirm or deny the accuracy of the reports that the merger is being called off.
The combination would create a $6-billion institution with approximately 500,000 members, 1,400 employees and 78 locations across seven states. The deal was originally expected to close by the end of 2015.
"Our similar cultures and complementary geographies and service strengths make this combination a natural fit," said Sandy Jelinski, president/CEO of Lake Michigan CU, in a previous report at the time the merger was being announced. "Both of our organizations are dedicated to delivering the very best to our members, and we are proud to continue our support of important events in our communities.”
Previous reports had Jelinski assuming the role of president/CEO of the merged institution.
"We are very excited to merge with Lake Michigan Credit Union," said Gary Easterling, president and CEO of United Federal, also at the time the merger was announced. Easterling is retiring, but planned to remain active through the merger process.
Plans called for existing operating locations to retain their current name and branding, with United Federal Credit Union becoming United Credit Union when the merger was to be complete. Both credit unions were to be consolidated under the LMCU state charter.
Founded in 1933, LMCU has more than 360,000 members and a staff of nearly 940, with assets exceeding $4 billion.
LMCU has a mortgage servicing portfolio of $8 billion. It also has a mortgage servicing portfolio of $8 billion. It has 37 branches, including one in Bonita Springs, Fla.
Founded in 1949, UFCU has 140,000 members with assets of almost $2 billion. UFCU employs 540 staff, with 27 branch locations in Michigan, as well as Arkansas, Indiana, North Carolina, Nevada and Ohio.