Two Michigan-based credit unions, Portland Federal Credit Union and SageLink Credit Union, have jointly announced their intention to merge.
Under terms of the agreement, Portland FCU has applied for state charter, with the combined post-merger entity will be called PFCU. The combined credit union will have total assets of $521 million, 46,000 members and thirteen branch locations in Kent, Barry, Ionia, Ingham, Shiawassee and Genesee counties.
The existing operating locations of SageLink will retain their current name and branding, with SageLink CU becoming, “SageLink a Division of PFCU,” for an interim of up to three years from the date of the merger, ultimately becoming PFCU.
Portland FCU’s CEO, Harvey Hoskins will remain CEO of the new entity, while Anna Willson, president and CEO of SageLink CU, will join the PFCU executive team.
All current employees will be retained by the combined institution.
The merger is expected to close at the beginning of the third quarter of 2018, subject to customary closing conditions, including regulatory and membership approvals.
“We share similar values and goals with SageLink and through this merger we will be able to provide expanded products and services to our members, along with the same outstanding service they’ve come to expect from us over the past 70 years,” Hoskins said.
Willson stated that “PFCU has a strong reputation in business lending to members that will enhance our lending platform and ability.”
Moreover, she added that the “adoption of technologies that SageLink brings in, like interactive teller machines and the combined product mix and support functions from both entities will allow the credit union to be a significant competitor in Michigan for years to come.”
Based in Portland, Mich., Portland FCU posted net income of about $2.6 million in 2016, up from about $2.3 million in the prior year.
Based in Durand, Mich., SageLink CU recorded net income of about $1.27 million in 2016, up from about $850,000 in the prior year.