Maine State Credit Union, Midcoast FCU plan to merge
File photo / Tim Greenway
Joe Gervais is the president and CEO of Midcoast Federal Credit Union.
Maine State Credit Union and Midcoast Federal Credit Union on Wednesday announced that they plan to merge, creating what would be the largest credit union in the state, with over $725 million in assets.
Terms of the deal were not disclosed. The two member-owned financial cooperatives expect to finalize the merger in 2021, subject to regulatory and member approval.
Maine State was ranked the second-largest credit union in the state during 2019 by Mainebiz, and currently has assets of over $514 million. Midcoast has assets of $209 million. Maine Savings FCU, based in Hampden, ranked as the state’s largest credit union last year, with roughly 30,000 members and assets of $424 million.
If the merger of Maine State and Midcoast is completed, the combined entity would serve 46,000 members through branches in Augusta, Bath, Brunswick, Edgecomb, Freeport, Thomaston and Waterville. The new credit union would keep the Maine State name and headquarters in Augusta.
Current Maine State President and CEO H. Tucker Cole would serve as CEO of the merged organization, while Midcoast President and CEO Joe Gervais would be president. No layoffs are planned as a result of uniting the two credit unions, according to the Midcoast website.
“We strongly believe that employee satisfaction is essential to member satisfaction. Finding a partner that is genuinely committed to the professional development of its employees was essential in Midcoast’s decision to partner with Maine State,” said Gervais. “Together, we will continue to cultivate a workplace that values and empowers its employees.”
The goal of the merger is to enhance value for members through innovation, vendor consolidation, and the alignment of products and services, according to the release.
“As we explored this collaboration, we found many synergies in our approach to providing service excellence,” said Cole. “We recognize that together, our members will benefit from expanded service locations, improved technology solutions, and highly competitive loan and deposit rates.”
Maine credit unions have increasingly joined forces over recent years. In a letter to Midcoast members, Gervais attributed the consolidation to the state’s modest population growth and the escalating costs of operation.
Since 2006, the number of Maine credit unions has declined by 28%, while their combined assets have grown by 128%, closing in on $10 billion, he noted.
“Today’s forecast for a sustained economic slowdown and low interest rate environment will only serve to accelerate those trends,” Gervais wrote.
In June, Augusta-based Connected Credit Union and Winslow Community Federal Credit Union completed a merger. Last year, Infinity FCU of Westbrook planned a merger with an Illinois credit union, but ultimately called off the deal.
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