BROWNSTOWN, Mich.—Two Michigan credit unions have announced plans to combine.
The $483-million LOC Credit Union in Farmington, Mich. and the $266-million Advantage One Credit Union in Brownstown, Mich. said they are seeking to tie-up pending a favorable vote by Advantage One Credit Union members.
Advantage One CU would be the surviving name and brand, with the headquarters in Farmington, Mich. The two CUs are approximately 33 miles apart in the Detroit suburbs.
With 27,695 members, LOC Credit Union reported $1.26 million in net income and had net worth of 9.95% as of the first quarter. The 17,805-member Advantage One had $873,000 in net income and net worth of 11.62% as of the same date.
Management Transition
LOC Credit Union President and CEO Stephen Grech will continue as CEO until his anticipated retirement date, the credit unions said, and Advantage One Credit Union President and CEO Chris Corkery will serve as president of the combined organization. The senior leadership teams of both credit unions will continue to service the combined organization, the credit unions said, adding there will be no job reductions.
“This merger allows us to deliver products and services in a more efficient manner while enhancing the overall experience for our members through an expanded retail banking footprint,” LOC Credit Union Chairperson Paul Renko said in a statement. “Both credit unions are on the same core processing and digital banking systems, which will lead to a more seamless integration and provides opportunities to achieve economies of scale while also leveraging our state-wide field of membership.”
The Pace of Technology Cited
Advantage One Credit Union Chairman Richard Lindemann added in a statement, “While both credit unions are financially strong and considered well-capitalized, our industry continues to demonstrate a need for fast-paced growth in technology. We also recognize that as technology evolves, so do the expectations that our members have of us. We believe LOC Credit Union shares similar beliefs and strategy as ours to help us remain competitive.”
A vote by Advantage One Credit Union members is expected to occur sometime this summer. If successful, a system and brand integration are anticipated for May 2027.
