NuUnion, Detroit Edison planning merger
Melissa Domsic mdomsic@lsj.com
November 07, 2009 20:32 PM

A proposed merger of NuUnion and Detroit Edison credit unions would create the state's fourth largest credit union.

Lansing-based NuUnion Credit Union and Plymouth-based Detroit Edison Credit Union announced their plans on Friday.

NuUnion is Michigan's eighth-largest credit union with assets of $839 million, while Detroit Edison is the state's 10th largest with assets of $681 million.

The institutions, pending state and federal approval, would combine to become Lake Trust Credit Union. NuUnion members also must approve the deal.

NuUnion President and CEO Steve Winninger would be the CEO of Lake Trust Credit Union.

Move to be 'effective'

Winninger said he hopes to have the deal completed by March 31, 2010.

"We are two strong independent financial organizations that really did not have to do this, but we spent a lot of time and analysis and determined we could be more effective combined than separately," he said.

Credit unions are cooperative financial institutions that are owned by their customers, or members, as opposed to banks, which are owned by stockholders.

In this case, the credit unions will combine their assets and liabilities, instead of one buying the other out.

More financial institutions tend to merge during tough economic times, David Adams, president and CEO of the Michigan Credit Union League, said in an e-mail.

"This merger will enable the newly combined credit union to be stronger, operate with a lower cost structure and offer more competitive rates while remaining a locally-owned and locally-focused cooperative financial institution," Adams said.