Credit Union Trust Opens for Business

Credit Union Trust said Monday it received approval from the state of Michigan to officially open for business, which the new organization called an “historic event for Michigan credit unions and their 5.23 million members.”

According to Credit Union Trust, a CUSO, it is the first special purpose bank in Michigan organized by seven credit unions, providing members access to trust and investment related services from the same credit union organization. Previously, credit union members had to seek professional trustee and fiduciary services from unaffiliated banks.

“This is an important step for Michigan credit unions and their members,” Robert Sajdak said, who is president/CEO of Credit Union Trust. “It’s the culmination of two year’s effort and we’re proud of what we’ve been able to accomplish for all Michigan credit union members.”

The seven organizing credit unions and shareholders of Credit Union Trust include the $960 million Honor Credit Union in Berrien Springs, the $550 million Team One Credit Union, in Saginaw, the $354 million Alpena-Alcona Area Credit Union in Alpena, the $676 million Frankenmuth Credit Union in Frankenmuth, the $1.1 billion Community Choice Credit Union in Farmington Hills, the $703 million ELGA Credit Union in Burton and the $512 million Members First Credit Union in Midland.

Credit Union Trust said it is looking to grow beyond the seven organizing credit unions and is structured to help all credit unions expand into the fiduciary, trustee and related services.  In addition, the new CUSO also provides solutions for foundations, not-for-profit organizations and other community-based entities.

Credit Union Trust is not insured by the FDIC and is not a member of the Federal Reserve, though it is regulated by the State of Michigan’s Department of Insurance and Financial Services’ Bank & Trust Division.

While there are other special purpose banks in Michigan, Credit Union Trust is the first credit union-owned special purpose bank in the state.