Member Merger Questions

Why do NuUnion and Detroit Edison Credit Unions want to merge?

This merger represents a mutually beneficial partnership that brings together two financially stable organizations to benefit the memberships of both organizations. The collaboration would provide substantial savings through operational efficiencies, lakeshore-to-lakeshore branch and ATM access, and greater financial resources to provide our members with enhanced, best-in-class products and services. Joining together with Detroit Edison Credit Union will create an even stronger organization, in the top 1% of credit unions nationwide in terms of asset size with $1.5 billion.

Why Detroit Edison Credit Union?

Our organizations have a lot in common — our members-first philosophies, strong and stable financial performances, similar asset sizes, experienced and skilled management teams, dedicated staff, and decades of rich history. And our geographic charters complement each other well — Detroit Edison Credit Union operates eight branches east of Lansing in Ann Arbor (2), Auburn Hills, Brighton, Center Line, Chelsea, Detroit, and Howell. They serve more than 66,000 members and have $680 million in assets. Visit their website at detedcu.org for more information about their existing organization.

What does this merger mean to me?

The merged organization will allow two individually strong and financially stable credit unions to join together to provide you with increased convenience with branch and ATM locations from Michigan’s east to west coast, greater financial resources, and enhanced products and services. You’ll have the confidence that the organization you’ve trusted throughout your membership will still be here to represent your best interests and serve you well into the future.

Is Detroit Edison Credit Union financially strong?

Like all credit unions around the country, Detroit Edison has seen fluctuations in its bottom line due to the NCUA Share Insurance Fund assessments. The National Credit Union Share Insurance Fund (NCUSIF) was created to insure member accounts at credit unions nationwide. Like the FDIC's insurance fund charges a premium to banks, NCUSIF is funded by credit unions. Earlier this year, the NCUA assessed all credit unions a percentage of their assets to cover an increase in member protection (up to $250,000) and the costs of a couple of corporate credit unions were in trouble in other parts of the country. They then refunded some of this assessment. The assessment had nothing to do with NuUnion Credit Union or Detroit Edison Credit Union, but like every other credit union it was an added expense. Despite these extra costs, Detroit Edison and NuUnion maintain capital levels well above the NCUA rating of "well capitalized." Detroit Edison and NuUnion have worked to strengthen earnings and have built strong capital positions and core earnings performance.

Is NuUnion being bought out?

Please be assured NuUnion is not being bought-out or purchased. The merger represents a mutually beneficial partnership that both organizations are entering into freely. And it brings together two financially stable organizations to benefit the memberships of both organizations.

Will NuUnion be changing its name?

We’ll be changing our name to reflect the partnership between NuUnion and Detroit Edison Credit Union. The new name, Lake Trust Credit Union, represents the new organization that would stretch from Lake Michigan to Lake Huron and Lake Erie based on the combined fields of membership of both organizations and the continued priority of building strong trust-based relationships with our members.

Why does NuUnion have to change its name?

It was decided that if one credit union’s name was retained and used going forward, this would imply that one credit union is the controlling credit union and this is not the case — this is a mutually beneficial partnership.

Why merge now?

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. We’ve seen increased competition within the credit union industry, and we’ve seen banks take a step back. There is a great opportunity to take a step ahead for our members.

How much is the merger going to cost?

We strongly believe the benefits to the memberships far outweigh the initial costs to join together. As a combined organization, we gain substantial savings through economies of scale. For example, instead of two computer systems, we would operate on just one. We would also be combining phone systems, internet banking systems, ATM networks, and much more. While there are short-term costs associated with combining credit unions, in the long-term this positions us to be more efficient, gain cost savings, maintain viability, remain competitive, and we improve our capital position (strength). All of this helps us give back to our members in the form of additional conveniences and enhanced products and services.

Who will govern Lake Trust Credit Union?

Both NuUnion and Detroit Edison Credit Unions are democratically governed and supervised by a Board of Directors. They represent the interests of their fellow members. The nine Board members from each credit union will combine to create a new Board of 18 people for Lake Trust Credit Union. NuUnion’s President and CEO Stephan L. Winninger would become the CEO of the new organization, and Detroit Edison Credit Union’s President and CEO William J. Thiess would be the President.

Where will Lake Trust Credit Union’s headquarters be located?

NuUnion’s Downtown Lansing location at 501 S. Capitol Avenue was selected as Lake Trust Credit Union’s headquarters, partly because of its central location.

Who can join Lake Trust Credit Union?

Lake Trust Credit Union will serve anyone who lives, works, attends school, or worships within 35 counties in mid-Michigan including Allegan, Barry, Calhoun, Clare, Clinton, Eaton, Genesee, Gladwin, Gratiot, Hillsdale, Ingham, Ionia, Isabella, Jackson, Kalamazoo, Kent, Lenawee, Livingston, Macomb, Mecosta, Midland, Missaukee, Monroe, Montcalm, Muskegon, Oakland, Osceola, Ottawa, Roscommon, Saginaw, Shiawassee, St. Clair, Van Buren, Washtenaw, and Wayne.

Are there any immediate changes that impact my accounts at NuUnion?

There are no immediate changes that will impact your accounts. Please continue to use our branches, electronic services, checks, debit and credit cards, and all other products and services as you normally would.

When can I use Detroit Edison Credit Union branches?

If the merger is approved, we will first work to combine systems and create integrated processes. We’ll keep you updated of our progress and be sure to let you know when you’ll have access to Detroit Edison Credit Union’s eight branches.

How will the merger affect NuUnion employees?

As we merge operations, there will be some changes. We’re working to determine all the changes that will be required to support an organization and membership the size of Lake Trust Credit Union. We’ll be consolidating operations, such as marketing, accounting, information services, e-commerce, and loans. Taking into consideration the skills, abilities, and interests of employees, some may be reassigned. We’ll do everything we can during this transition to help both our members and our staff adjust to the changes.

Links