Seven credit unions in Michigan plans to open a new trust bank late in the first quarter of 2019 after receiving approval from state regulators.
The OK from the Michigan Department of Insurance and Financial Services’ Office of Banking allows the credit unions to proceed with creating the Credit Union Trust to serve members who need or want trust and investment services.
“We know our members, the market, and the industry. We will begin immediately implementing a tightly-focused business plan to serve the needs of our founding credit union members, and all Michigan credit union members who previously had to go outside the familiar credit union family for trust services,” Robert Sajdak, president and CEO of the Farmington Hills-based Credit Union Trust, said in a statement.
“This is a service whose time has come and it’s one our members need,” he said.
The seven credit unions that collectively committed $5 million in capital to form Credit Union Trust are:
- Honor Credit Union, Berrien Springs
- Alpena Alcona Area Credit Union, Alpena
- Community Choice Credit Union, Farmington Hills
- ELGA Credit Union, Burton
- Frankenmuth Credit Union, Frankenmuth
- Members First Credit Union, Midland
- Team One Credit Union, Saginaw
The seven credit unions combined have more than 100 branch locations across Michigan, 435,000 members and assets totaling more than $3.6 billion.
The organizations united to form the new trust bank after the state Legislature in 2016 updated the law governing credit unions in Michigan. The changes in the law allow credit unions to provide trust services through an existing or newly formed trust bank.
Credit Union Trust now needs to begin hiring staff, implementing plans and contracting for systems and services, Sajdak said.