Mainebiz

W W W. M A I N E B I Z . B I Z 11 O C T O B E R 1 9 , 2 0 2 0 A healthy smile can make all the difference. Protect yours with dental insurance backed by the nation's largest network of dentists. NortheastDeltaDental.com STAND OUT IN A SEA OF SAMENESS WITH YOUR SMILE POWER! NEDD_1_2 PAGE_ MAINEBIZ_consumer V2.indd 1 8/19/19 8:03 AM A merger will create Maine's largest credit union B y W i l l i a m H a l l AUGUSTA — Maine State Credit Union and Midcoast Federal Credit Union 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, was ranked 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. Maine State President and CEO H. Tucker Cole would serve as CEO of the merged organization, while Joe Gervais, Midcoast's president and CEO, would be president. No layoffs are planned, 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 devel- opment 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. "As we explored this collaboration, we found many synergies in our approach to providing service excel- lence," 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 slow- down 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. B I Z M O N E Y The merger of Maine State Credit Union and Midcoast Federal Credit Union will create the largest credit union in the state, with $725 million in assets. F I L E P H O T O / T I M G R E E N WAY Joe Gervais of Midcoast FCU.

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