First Community FCU and E&A CU Announce Merger (Misc News: June 4, 2013)
First Community FCU in Parchment and E&A CU in Port Huron have announced plans to merge, forming what will soon become Michigan’s ninth $1 billion credit union.
Cheryl DeBoer will be president and CEO of the combined credit union. E&A President and CEO Janice Rose will be chief community relationship officer.
The combined credit union will use E&A’s state charter, but First Community will be the surviving credit union. A First Community spokeswoman said an as-yet undeveloped name will be announced after the merger is approved by First Community members. E&A members do not need to vote on the merger.
First Community has more than $700 billion in assets and 80,000 members while E&A has $276 million nand 35,000 members. First Community, was chartered in 1938 as Parchment Employees FCU. E&A was chartered as St. Clair County Teachers CU in 1935 and changed its name to Educational Associates CU in the 1970s before changing to E&A.
Both of the credit unions are healthy. First Community reported $1.2 million in net income for the first quarter of 2013 and a $3.1 million net for 2012. It had net worth of almost 13% at March 31. E&A reported $1.1 million in net income in the first quarter and $5.4 million for 2012. It had net worth of more than 10% at March 31.
First Community has 17 branches in Michigan, Illinois and Wisconsin. E&A has four branches in Port Huron, Fort Gratiot, Marysville and New Baltimore. All branches are expected to remain open. The combined credit union will have 375 employees. No layoffs are expected.
The merger is pending approval by the state Department of Insurance and Financial Services and the vote of First Community members that is expected in September or October. The credit unions expect to complete the merger by January 2014.
Members will experience minimal changes to their account and no branch offices are scheduled to close.
“This partnership is outstanding news for the community with respect to local employment, onvestment and community service,” DeBoer said. “Giving backt o the community will continue to be an essential part of our philosophy and mission. Additionally, there will be a continued emphasis on making loans that strengthen the community, including business and consumer loans.”