Exciting Merger News From LOC Credit Union!
Dear Valued Member:
The Board of Directors of LOC Federal Credit Union is excited to announce for your consideration a proposed merger with MemberFocus Community Credit Union based in Dearborn, pending regulatory approval, final due diligence and an affirmative vote from our membership. The Board of Directors of each credit union has unanimously approved this partnership to create more value on multiple levels for both institutions, who share common roots in the educational communities in which they were originally founded to serve.
While LOC Federal Credit Union is financially strong and healthy, the Board of Directors decided to explore a strategic partnership with a state-chartered credit union as we look to our next chapter of growth and expansion. MemberFocus Community Credit Union’s state charter provides more flexibility for expansion, which would allow more people to become members of the credit union. Concurrently with this process, MemberFocus Community Credit Union will seek a state-wide field of membership through the Michigan Department of Insurance and Financial Services (DIFS).
In addition to obtaining a state-wide field of membership, this merger allows LOC to retain its identity, leadership team and strategic goals while leveraging MemberFocus Community Credit Union’s financial strength and the economies of scale that can be achieved as a larger financial institution.
Below are some additional details on what the combined credit union would look like:
Name: On the effective date of the merger, LOC's name will not change, but MemberFocus Community Credit Union will change its name to LOC Credit Union.
Membership: If granted an expansion by DIFS, anyone who lives, works, worships or goes to school in the state of Michigan and their immediate family would be eligible for membership.
Leadership: LOC’s current President/CEO Stephen Grech will lead the combined credit union along with the senior leadership team of both credit unions.
Governance: Each credit union’s Board of Directors will continue to serve. In total, there will be fourteen board members. LOC Credit Union Board Chair Michael Lasley will continue to serve as chair.
Employees: The credit union would continue to provide career opportunities to all employees of both organizations with no job reductions as a result of the merger.
Headquarters: LOC’s existing Farmington office will serve as the surviving credit union’s main office.
Size: The combined credit union would have approximately $445 million in assets and serve more than 33,000 member accounts.
Branches: Eventually, LOC members will have access to two additional locations in Dearborn.
NCUA Insurance: As state-chartered credit union, your savings would continue to be federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. Through the National Credit Union Administration, a U.S. Government agency.
About MFCCU: MemberFocus Community Credit Union was chartered in 1935 as Fordson Teachers’ Credit Union eventually serving all of Dearborn Public Schools employees. They obtained a community charter in 2005. As of June 30, 2021, they have approximately $134 million in assets and serve nearly 8,200 member accounts.
What are the next steps?
Each credit union will continue the due diligence process while obtaining regulatory approval from both DIFS and NCUA. Once we receive regulatory approval, a merger packet and ballot will be mailed to all members in good-standing. A special meeting of the LOC Federal Credit Union membership will also be called to consider the merger plan and provide an open forum to address questions and comments from the membership. This is expected to occur in early 2022.
Your Board of Directors unanimously endorses this merger, and we encourage you to vote in favor when you receive your ballot.
Please continue to watch your mail, email and our website for more information about the merger as it becomes available.
Chairman of the Board
On behalf of entire Board of Directors