Michigan regulator approves four-way CU merger

LANSING, Mich. – The state Office of Finance and Insurance Services has approved the merger of three Grand Rapids credit unions into Grand Rapids Teachers CU, which has been managing the three CUs under a contractual arrangement for several years. Involved in the merger are Alliance CU, $38 million in assets, nearly 11,000 members; Saint Mary’s Hospital CU, $22 million in assets, 5,000 members; and Health Care CU, $67.7 million in assets and 17,000 members. Grand Rapids Teachers, the surviving credit union, has $291 million in assets and serves nearly 49,000 members. Roger Little, director, credit union division of the Office of Finance and Insurance Services said the field-of-membership of the surviving credit union will include the FOMs of the four merged CUs. The Michigan Credit Union Act allows for the combination of FOMs when mergers occur. Little said the merger of the four CUs was the first of its kind in the state that he could remember. “The trend has been for consolidation in the industry, but I think the merger of multiple credit unions such as these are an isolated case,” he said.