INDIANAPOLIS – Jet Credit Union is moving forward with a merger with $338 million Credit Union 1 in Rantoul, Ill. Scott Newman, the attorney representing Jet CU in its civil suit against its former President/CEO John Loudermilk for financial misconduct, said the merger has been approved by both boards and is awaiting regulator approval. "The transition from Loudermilk's leadership to the leadership of Credit Union I is a healthy one for the members," Newman said. "We don't anticipate any problems with the regulator because they've had input with the investigation." Newman said Jet CU is in the process of reopening its Tibb branch here, previously closed to reduce operational costs and now sporting a new drive-through. More importantly, he assures that the credit union's nearly 12,000 members accounts are safe. Ohio-based American Share Insurance insures each member's account up to $250,000 and Jet CU has $2.25 million in fidelity insurance covering officers and directors. Paul Simons, president/CEO of Credit Union 1 said the merger is a "great opportunity to serve a totally underserved area." "In talking with the (Jet CU) staff, they've always wanted to do a lot of marketing in other areas but the former CEO leaned towards commercial lending," Simons. "We can use this opportunity to do other things." With past mergers, employees and senior management have been brought into Credit Union 1′s organization and this will follow that pattern, Simons said. Because the credit unions are waiting regulator approval, it's too early to tell where Jet CU employees will be transitioned to, he added. Merger discussions began in December 2003 and officials are hoping have a final decision by Feb. 29. Originally chartered as Chanute Military Credit Union in 1958 to serve Chanute Air Force Base, it changed its name to Credit Union 1 in 1982 and expanded its charter in 1999. It is one of the largest credit unions in Illinois with more than 100,000 members and 750 select employee groups. Paul Simons is president/CEO of Credit Union 1. [email protected]