Several additional steps needed to gain full approval
Lansing and Plymouth, Michigan (Vocus) November 6, 2009 -- The Boards of Directors of Detroit Edison Credit Union headquartered in Plymouth, Michigan and NuUnion Credit Union headquartered in Lansing, Michigan have approved an “intent to merge agreement” between the two organizations, the first formal step in the merger process. Now the state and national regulators, Office of Finance and Insurance Regulation and National Credit Union Administration, Federal Trade Commission, and Department of Justice, and NuUnion Credit Union members must approve the agreement before it can be finalized.
The merger of Detroit Edison Credit Union and NuUnion, two independently strong and stable credit unions, would create great opportunities for both memberships, including improved convenience and best-in-class products and services, as well as increased operational efficiencies and greater financial strength and resources.
Like other mergers, when two credit unions come together, they do so after recognizing the benefits that can be realized as a result of joining forces. However, unlike typical bank mergers, no money is exchanged and, in this case, the two organizations would partner to form a new organization which best serves both sets of members.
Detroit Edison Credit Union and NuUnion bring diverse geographical community charters, which would create wider access for both memberships. NuUnion’s 28-county community charter ext membership eligibility to nearly everyone in the southern half of Michigan’s Lower Peninsula, excluding the metropolitan Detroit area. Detroit Edison Credit Union’s community charter includes the metropolitan Detroit area as well as eight counties from as far northeast as St. Clair County to southwest Lenawee County.
The name of the combined credit union would be Lake Trust Credit Union™ – a representation of the organization which would stretch from Lake Michigan to Lake Huron and Lake Erie, based on the combined fields of memberships of both organizations and the continued priority of building strong trust-based relationships with members. Both Boards of Directors, nine members each, would be combined to form a Board of Directors of 18. NuUnion’s CEO Stephan L. Winninger would be the CEO of the new organization and Detroit Edison Credit Union’s CEO William J. Thiess would be the President.
“This is a unique time in the history of our economy, and it’s created some new opportunities for two strong credit unions like NuUnion and Detroit Edison Credit Union,” said Stephan L. Winninger, President and CEO of NuUnion Credit Union. “While we’ve seen increased competition within the credit union industry, we’ve seen banks take a step back. We know we have a great opportunity to step ahead for our members. The values of our two organizations are aligned and our members-first philosophy was the basis of this potential partnership – more for the member. That’s the only reason to pursue something like this. This is great for our members.”
“This is an exciting opportunity for two financially strong and healthy credit unions to combine resources and capabilities to better serve both memberships,” said William J. Thiess, CEO and President, Detroit Edison Credit Union. “Together we gain greater efficiencies which allow us to expand and enhance products and services and better meet the financial needs of both memberships.”
Member benefits for a combined organization of Detroit Edison Credit Union and NuUnion include:
Specific member benefits for each respective membership are available at detedcu.org and NuUnion.org. There are no immediate changes that will impact member accounts.
Winninger continued, “This is not a done deal, we need NuUnion members to agree with us – that they’d like to see the benefits we’re offering. We strongly believe in the opportunities that would be provided through improved access, enhanced products, and cost efficiencies. It’s our job to clearly convey that to our members.”
“We strongly believe the benefits to the memberships far outweigh the initial costs to join together,” said Thiess. The combined assets of the organizations would be $1.5 billion – placing Lake Trust Credit Union™ in the top 1% of credit unions nationwide and the 4th largest credit union in Michigan in terms of asset size while creating the opportunity for the organization to gain substantial savings through economies of scale.
Established in 1944, Detroit Edison Credit Union is a $681 million state-chartered credit union headquartered in Plymouth, Michigan originally serving the employees, retirees, and contractors of DTE Energy and family members. In November of 2007, Detroit Edison Credit Union completed a purchase and assumption of Huron River Area Credit Union which is now operating as Huron River Financial, a division of Detroit Edison Credit Union. Also at that time the charter of Detroit Edison Credit Union was expanded to serve anyone living, working or worshipping in the counties of: Lenawee, Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw and Wayne. Detroit Edison Credit Union serves more than 66,000 members at eight branches in Ann Arbor, Auburn Hills, Brighton, Center Line, Chelsea, Detroit, and Howell. More information can be found at detedcu.org.
NuUnion was established in 1952 by State of Michigan employees. Today, over 91,000 members strong, NuUnion serves members at 14 branches, including eight locations in Lansing, two in Mt. Pleasant, and four in west Michigan. With $839 million in assets, NuUnion is a strong, financially stable organization with a rich history in community outreach and partnership. NuUnion has a 28-county community charter, and can serve anyone living, working, attending school or worshipping in most mid-Michigan counties. More information can be found at NuUnion.org.
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