WESTBROOK, Maine–A merger between two credit unions 1,200 miles apart has been approved by members. Members of Infinity Credit Union have approved a merger with Deere Employees Credit Union (DECU) of Moline, Ill.
CUToday.info featured the credit unions’ explanation of the long-distance combination here.
This is the second attempt by Infinity CU to merge with a credit union in Iowa. An earlier proposed combination with Vibrant Credit Union was called off.
According to a statement from the credit unions, each CU will retain local control in their region, including keeping their respective names, identities, and branches to continue serving their local communities. To accommodate the merger, Infinity has transitioned to a state-charted credit union and it removed ‘Federal’ from its name, the credit unions said.
The $336-million Infinity FCU reported $879,749 in net income as of March 31, according to its Call Report, with a net worth ratio of 7.32%. The $1.375-billion Deere Employees CU reported $3.655 million in net income, with 8.33% net worth. According to the merger disclosure statement required by NCUA, Infinity said there is no financial compensation being paid to board members or management as a result of the merger.
“The goal of the merger is to combine resources in order to offer more benefits to our members and to drive further growth and expansion in our respective communities,” said Elizabeth Hayes, Infinity CU President/CEO.
No Staff Reductions Planned
The unified organization will be headquartered in Moline and led by Kurt Lewin, DECU President/CEO. Hayes will assume the role of Maine Market President and will lead the employees, operations, and community partnerships in Maine.
“The combined credit union will provide more opportunities for employee growth, training, and professional development,” the credit unions said in a statement. “There will be no reduction in employees; conversely, Infinity CU plans to add wealth management services and other opportunities to their suite of products.”
The merged credit union will have more than 60,000 members.