Illinois Credit Unions Plan Mergers for Future Growth

An Illinois credit union will become the state’s newest $1 billion cooperative while a second Illinois credit union will become the state’s fifth largest, should their proposed merger plans be approved by members and regulators.

Earlier this month, the $333 million Infinity Federal Credit Union in Westbrook, Maine, said it intends to merge with the $753 million Vibrant Credit union in Moline, Ill., which will create the state’s ninth billion-dollar cooperative.

On Monday, the $865 million Andigo Credit Union in Schaumburg, Ill., announced it plans to consolidate with the $1.2 billion Consumers Credit Union in Gurnee, Ill., creating the fifth largest cooperative in the Land of Lincoln.

In a prepared statement to its membership of 18,073, Infinity said it explored local merger options but determined Vibrant was a good merger fit because it supports Infinity’s culture.

According to Infinity, consolidating the Illinois cooperative will be beneficial because it will enable Infinity to bring out-of-state resources to fuel expansion and growth in Maine.

Post merger, the credit union’s headquarters will be in Moline, but Infinity said in its prepared statement to members that it will have local control as the East Coast hub.

“This gives us the benefits of both worlds – the additional resources to expand and grow in Maine as well as the ability to ensure decision-making remains local,” Infinity said in its prepared statement.

Infinity will have two board seats and one associate board member from Maine on the combined credit union board, while senior management roles and responsibilities will have authority and influence to represent the Pine Tree State and contribute to the overall performance of the combined credit union.

Elizabeth Hayes, Infinity’s president/CEO, will assume the role of EVP once the credit unions consolidate. Vibrant President/CEO Matt McCombs will retain his position.

Vibrant employs 200 staff members, and operates 13 branches across Iowa, Illinois and Indiana, and a contact center in Reno, Nev. Infinity’s four branches will continue to operate and its 85 employees will be retained post merger.

The credit unions did not indicate when the merger is expected to be finalized.

Subject to regulatory and member approvals, Andigo’s proposed consolidation into Consumers is expected to finalize later this year.

“Both of our teams are excited for the opportunities that combining forces will bring both to our members and our employees,” Consumers President/CEO Sean Rathjen said in a prepared statement. “With the talent and products we have at both credit unions, we will have a competitive edge that will enable us to offer best of breed products and services to our growing member base with the largest Illinois credit union branch network in the greater Chicago area.”

The combined credit union will operate 18 branches and employ more than 475 staff members who will serve a membership of nearly 160,000.

Post merger, Rathjen will be the CEO and Mike Murphy, CEO of Andigo, will become president.

“Our two organizations share a deep commitment to our members, our team and our communities,” Murphy said in a prepared statement. “That dedication will remain unshaken as we come together.”