Two major suburban credit unions announced they intend to merge by the end of the year, which would create the fifth largest credit union in Illinois.
The boards of Schaumburg-based Andigo Credit Union and Consumers Credit Union, based in Gurnee, have already approved the merger, the two agencies said in a statement Monday. Once completed, the new organization -- which will operate as Consumers Credit Union -- will serve more than 156,000 members and have more than $2.1 billion in assets, according to the statement.
Consumers Credit Union CEO Sean Rathjen will remain CEO, while Andigo CEO Mike Murphy will become president. The combined agency will have more than 475 employees and operate 18 branches in the suburbs. It will offer access to a national shared branching network and more than 80,000 ATMs globally.
"The combination of our two strong, healthy credit unions will provide us with the scale we need to innovate and to dedicate resources to deliver exceptional member experiences, both in-person and digitally," said Andigo's Murphy.
Consumers Credit's Rathjen added the merger will give the new agency "a competitive edge that will enable us to offer best-of-breed products and services to our growing member base with the largest credit union branch network in the Chicago area."
The move requires approval from the Illinois Department of Financial and Professional Regulation and the National Credit Union Administration. Since the organization will operate as Consumers Credit Union, Andigo's customer membership will need to approve the merger. Unlike traditional banks, credit unions are nonprofit organizations whose customer members have a vote in operations, which is typically conducted at an annual meeting.
Once an alternative to banks that served a specific company or organization, credit unions have expanded their services over the past decade to coincide with what banks offer -- such as providing mortgages and credit or debit cards -- while opening services to a wider range of customers. As a result, credit unions -- like banks -- have been looking at growing operations through mergers and acquisitions. Last month, Elgin-based Corporate America Family Credit Union acquired Ben Franklin Bank in Arlington Heights and Rolling Meadows, which will be absorbed into the credit union. Last November, Golden Eagle Community Bank in Woodstock was acquired by Michigan-based Advia Credit Union. Consumers Credit, which was formed in 1930 as a cooperative for milk farmers, currently has more than 120,000 members and $1.27 billion in assets. Andigo, which once was the credit union for employees of Motorola, was formed in 1939 and currently has 36,000 members and $865 million in assets.