ST. JOSEPH, Mich. — A merger between two credit unions that would cross state lines is being proposed.
The $3.98-billion, Michigan-based United Federal Credit Union said it is seeking to merge in the $146.7-million GOLD Credit Union, which is located approximately 675 miles away in Allentown, Penn. The merger is pending approval by members of GOLD CU. If approved, the combined entity would have approximately 196,000 members across seven states with an asset size of just over $4.1 billion.
As of Sept. 30, GOLD CU reported a loss of $404,614, with capital of 8.7%.
‘Future of Member Service’
“This collaboration is all about bringing together two credit unions that are focused on the future of member service,” said UFCU CEO Terry O’Rourke, who expects the merger to be finalized in the spring of 2024. “We are committed to local decision making, local investment and local involvement. Together, we can do more for the financial well-being of the Lehigh Valley.”
Added GOLD Credit Union President and CEO Cheryl Bartholomew, “As a small credit union, GOLD is limited in our ability to fulfill all our members’ needs to achieve financial independence. The relationship with United will present our members with the financial benefits we have been missing and enable us to fulfill that need. Our shared values, resources, talent, and community spirit will be the solid foundation with which we head into the future as that unflinching ally and advocate for our members.”
Expanded Offerings
United FCU said members of GOLD CU will have access to new offerings, including digital banking enhancements, expanded share account products, debit and credit cards that earn rewards, the opportunity to earn relationship-based rate incentives, business and commercial accounts and expanded mortgage products.
Plans call for all GOLD branches to remain open and for every GOLD employee to be offered a position at United. The credit union said Bartholomew will also remain in a leadership role.
“Across dozens of communities from Michigan to Nevada and North Carolina to Arkansas, United Federal Credit Union has a proven track record of putting power in the hands of strong, local leadership,” said O’Rourke. “The Lehigh Valley is among the faster growing regions in Pennsylvania, built on hardworking values and primed to be a destination community for years to come. We want GOLD members to know that they can expect to maintain the same local relationships they have with the team they have come to value and trust.”
Assisting in Merger
United FCU reported it is being assisted in the merger by Michael Bell of Honigman LLP, and Charley McQueen of McQueen Financial Advisors. GOLD was advised by Fitzpatrick Lentz & Bubba, P.C. Both credit unions are also receiving regulatory consulting from Dollar Associates.
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