Oakland County CU & Vibe CU Announce Partnership Merger
Two Michigan credit unions have nearly $1 billion in assets.
Two like-sized Michigan credit unions will merge in early 2019, creating a credit union with nearly $1 billion in assets based 30 miles northwest of Detroit.
Oakland County Credit Union, Waterford, Mich. ($367 million in assets, 31,778 members) will merge with Vibe Credit Union, Novi, Mich. ($543.5 million in assets, 32,732 members) under the merger approved by the NCUA in May.
The credit unions on Wednesday announced the deal’s approval by Vibe members, and said they expect it to be completed in January 2019.
Oakland County CU President/CEO Allan Kemp McMorris will serve as president of the combined credit union, while Vibe CEO/President Tom Reagan will be CEO.
Although Oakland County CU is smaller, it has had faster asset growth and higher return on average assets than Vibe. However, the combined entity will carry the Vibe name and the headquarters will remain at Vibe’s location in Novi, about 20 miles south of Waterford Township.
Previously, Oakland County CU merged with BestSource Credit Union of Waterford, Mich. ($95.7 million in assets, 8,278 members) in 2014 and the $15 million My Postal Credit Union of Pontiac, Mich. ($15 million in assets, 1,240 members) in 2016.
The merger with Vibe will give Oakland County CU a new identity and new footprint, with 16 branches in southeast Michigan, including the second largest number of branches in Oakland County, McMorris said.
“Currently over 30% of our members live outside Oakland County, and are seeking an expanded branch network,” McMorris said.
Reagan said the merger was approved because the Vibe board believed “combining forces will allow us to better provide for our members and employees.”
Both are well capitalized with strong net worth ratios.
Oakland County CU had stronger ROA: 1.15% in 2016, 1.09% in 2017 and 0.79% in 2018’s first half. Vibe’s ROA was 0.14% in 2016, 0.38% in 2017 and 0.50% in 2018’s first half. The combined ROAs were about on par with the average for their asset class.
Oakland County CU’s asset growth in 2016 and 2017 was 6% per year, on par with its asset class, while Vibe’s was 3%. At June 30, Oakland County CU’s assets were 7% higher than a year earlier, while Vibe’s rose 1%. Average first half growth for their asset class was 10%.