JACKSON, Mich. — Credit unions in two states have announced separate plans to merge, with one of the CUs also saying it will unveil a new name in the future.
In Michigan, CP Financial Credit Union, which recently changed its name (and charter) from CP Federal Credit Union, said it plans to merge in the $49.9-million Washtenaw FCU in Ypsilanti.
According to the credit unions, the merger follows 12 months of collaboration between the credit unions. In May, both boards voted unanimously to move forward with the intent to merge, the CUs said.
In a statement the credit unions said both are financially strong and when the merger is complete 12 branches across three Michigan counties will be available to serve the combined 63,000 members.
The credit unions said plans call for retaining all staff as well as expanding membership eligibility under a state charter in which anyone who lives, works, worships or attends school in the state of Michigan will be eligible to join.
New Name & Brand
In addition, the credit unions said plans call for the consolidation to result in a new name and brand. Chrissy Siders, current president of the $553-million CP Financial, will continue in that role, while Washtenaw FCU CEO Jason Matley will become EVP-strategy and transformation.
“I can’t think of a better partner than Washtenaw Federal Credit Union,” said Siders in a statement. “We share a strong commitment to inspiring and caring for our members, communities, and each other. I am confident this partnership will be beneficial for everyone involved as we provide additional products, services, locations and opportunities for existing and potential members and employees.”
A vote by WFCU members is set for the fall. If approved, the merge would be effective Jan. 1.
At mid-year, Washtenaw FCU reported $94,698 in net income, while CP Financial reported $1.3-million in net income.
Texas Merger
Meanwhile, in Texas, Members of Go FCU have voted in favor of merging into America’s Credit Union in Garland, Texas. The two CUs said they plan to finalize the combination by Q2 of 2021.
In a statement on its website, the $140-million Go Federal said the merger will allow it to continue to grow, as America’s CU is better capitalized, has more branches, and offers better technology and product options.
Once the merger is complete, Rebecca McCoy, president of the $244-million America’s CU will retire, and Bert Beal, president/CEO of Go FCU, will lead the merged institution.
A notice to members of the $140 million-asset Go in advance of the vote explained that the merger was in the institution’s best interest because it would better position the credit union for growth due to ACU’s stronger capital position, a broader branch network, better technologies and additional products and services.
Bert Beal, the current president and CEO of Go FCU, will lead the combined institution. Rebecca McCoy, president and CEO of $244 million-asset America’s CU, will be retiring.
Go FCU’s mid-year call report shows a loss of $62,810. America’s CU reported net income of $480,291 at mid-year.