DETROIT–Seven Michigan credit unions are forming a bank. The Michigan Department of Insurance and Financial Services has accepted the application from the credit unions, and now has 100 days to approve the new charter.
The objective of the new limited-purpose bank is to provide trust services and will be the first of its kind in Michigan, according to Crain’s Detroit.
“Operating a trust bank allows the credit unions to offer wealth and asset management services to members it can't do as standalone credit unions,” Crain’s Detroit reported. “The bank can manage trust assets directly under the new organization.”
The credit unions that are contributing a total of $5.5 million in capital to launch the new bank, to be called Credit Union Trust, include: Farmington Hills-based Community Choice Credit Union; Alpena Alcona Area Credit Union; Burton-based ELGA Credit Union; Frankenmuth Credit Union; Berrien Springs-based Honor Credit Union; Midland-based Members First Credit Union; and Saginaw-based Team One Credit Union.
The credit unions have a combined 424,000 members.
CEO is Hired
Robert Sajdak, former senior vice president and group business manager of personal trust activities for Comerica Bank, will serve as CEO of the new bank, Crain’s Detroit said,
Credit Union Trust will be headquartered at Community Choice CU’s main office in Farmington Hills. Plans call for launching with six to eight employees and to eventually have Trust professionals working in several of the credit union locations.
Sajdak told Crain’s Detroit that more and more credit union customer are asking for trust services as they are now managing more of their money.
"Everyone now has IRAs and 401(k)s instead of a pension check," Sajdak told the publication. "Many people now have a substantial amount of money to manage whether they are blue-collar, white-collar or a farmer. At time of death, it's now not unusual to have needs that are significant."