Two small credit unions in western Michigan are merging to form Compass Credit Union with about $66 million in assets and 8,770 members, saying the larger size will allow them to better meet competitive and regulatory demands.
Rogue River Community Credit Union of Sparta, Mich. ($40.6 million in assets, 5,772 members) is acquiring Newaygo County Service Employees Credit Union of Fremont, Mich. ($25.3 million in assets, 2,998 members). Sparta is on the Rogue River, and 17 miles north of Grand Rapids and 30 miles south of Fremont.
Recent NCUA reports show both credit unions are well capitalized, but net income has been falling.
Last year, net income fell 18% to $305,911 at Rogue River, and 13% to $43,719 at Newaygo. For January through June, net income fell 15% to $180,164 at Rogue River and 17% to $33,565 at Newaygo.
In addition to their main offices, the Newaygo County credit union has a branch in Fremont. Rogue River CU has an ATM in Sparta.
The merger, terms of which were not disclosed, was reported by the Grand Rapids Business Journal Tuesday.
“By pooling resources, the newly named Compass CU will be able to expand more offerings to our members” said Erika Garrison-Bauer, Rogue River CU's president/CEO and president/CEO for Compass CU.
“We look forward to additional expansion and growing with new partners, as this will allow us to reduce imposed fees on members and help us better serve new and existing communities,” she said.
Dennis Greeno, manager of Newaygo, said the formation of Compass is a step toward a future that will allow smaller credit unions to survive.
“With increasing regulatory demands on credit unions,” Greeno said, “it is essential that the next generation of smaller and mid-sized credit unions unite, so that we can continue to offer higher interest rates on savings, lower interest rates on loans and meet the technological demands of our membership.”
In another merger, 1st MidAmerica Credit Union of Bethalto, Ill. ($694.4 million in assets, 62,131 members) has acquired Madco Credit Union of Edwardsville, Ill. ($1.7 million in assets, 561 members). Bethalto and Edwardsville are 11 miles apart in Madison County in the St. Louis metropolitan area.
In addition to its main office, 1st MidAmerica has 11 branches and 10 ATMs.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
