The southwest Michigan credit union, making its first market entry into Indiana, said it would continue to operate its new credit union branch at Griffith's current location.

“Griffith will be retaining certain assets that will be used to fund accrued liabilities relating to its employee benefit plans which will not be acquired by UFCU in the transaction. This acquisition is subject to regulatory approvals and is expected to close in the third quarter of 2011,” the credit union's statement said.

“Griffith intends to liquidate following the closing and distribute any remaining net assets at the time of liquidation to its depositors. Although the amount of the distribution cannot be determined at this time, depositors who retain accounts at UFCU will be credited with their pro rata distribution upon Griffith's liquidation. Other depositors will be sent their distributions,” the statement said.

James E. Morris, president of Griffith, told Credit Union Times that “it is my understanding this is the first federal credit union acquisition of a state chartered bank” though there have been state-to- state pacts in the past.

Morris said he used the services of an Indianapolis investment banking firm, Renninger & Associates, LLC to scout out prospective suitors eventually choosing UFCU.

Morris said in the formal statement: “We are pleased that our loan and deposit customers and the Greater Griffith Community will be served by UFCU, which is also owned by its members. Our customers will become UFCU's members and will enjoy access to UFCU's wide variety of products and services once this transaction is completed.”