Michigan State University FCU Plans Merger With Gabriels Community Credit Union

Just 10 weeks after announcing plans to acquire two Illinois banks to expand into the Chicago marketplace, the $7.6 billion Michigan State University Federal Credit Union in East Lansing, Mich. said last week it has signed a merger agreement with the $32.1 million Gabriels Community Credit Union in Lansing.

“This merger represents a partnership of being able to continue to provide accessible financial products and services to GCCU members,” MSUFCU President/CEO April Clobes said in a prepared statement. “At MSUFCU, we are committed to helping members achieve financial security, and this merger will empower us to provide even more comprehensive financial solutions to GCCU and MSUFCU members, including a much-requested branch location in Jackson, Michigan.”

Gabriels Community CU’s 13 employees operate a branch in Jackson and its main branch in Lansing, serving more than 2,700 members.

MSUFCU currently serves more than 5,000 members in Jackson County and more than 10,000 members within 30 miles of the Jackson-based branch.

In its prepared statement, MSUFCU said it anticipated that the merger will be completed by the end of 2023 pending all required regulatory approvals. However, as of Nov. 20, Gabriels Community’s proposed merger documents have not been posted by the NCUA.

Gabriels Community CU recorded a loss of $288,692 at the end of 2023’s third quarter compared to a gain of $487,612 at the end of last year’s third quarter, according to NCUA financial performance reports. At the end of the second quarter, Gabriels Community showed a loss of $106,622 compared to a gain of $346,112 in the second quarter of 2022.

At the end of the first quarter, the credit union posted a gain of $56,122 and at the end of 2022, it recorded a gain of $856,047, NCUA financial performance reports showed.

Amy Coe, who is vice president of deposit operations at MSUFCU, is listed as Gabriels Community president/CEO, according to the credit union’s current profile report filed with the NCUA.

This proposed merger comes after MSUFCU said in August that it plans to acquire the $144 million Algonquin State Bank in Algonquin, Ill.  and the $322 million McHenry Savings Bank in McHenry, Ill.

The proposed bank acquisitions are part of MSUFCU’s strategy to expand its presence in the Chicago market. In July, MSUFCU said it plans to open five branches in Chicago next year — its first offices outside its home state.

“The Chicagoland area has the greatest concentration of MSU alumni outside of Michigan, including 2,500 who are MSUFCU members,” Clobes said. “In order to best fulfill the credit union’s mission, our aim has always been to be where our members are, so this branch expansion into Chicago will help further those efforts.”