Merger joins two area credit unions

GRAND BLANC TWP. - July seems to be merger month for area financial institutions.

For the third time this month, two area financial institutions have announced plans to merge.

In the latest merger, Grand Blanc Township-based Tri-Pointe Community Credit Union has combined with Genesee Township-based Michigan Federal Credit Union.

Under the arrangement, both credit unions will operate under the Tri-Pointe name starting Oct. 1.

The headquarters for the merged five-branch credit union will be at Tri-Pointe's Grand Blanc Township office, 2343 E. Hill Road.

Earlier this month, Citizens Bank and Republic Bancorp announced plans to merge under the name Citizens Republic Bancorp, and Genesee First Federal Credit Union and Shiawassee Community Credit Union combined to create SageLink Credit Union.

"We're definitely seeing that trend with smaller banks and credit unions to make them more competitive in this financial industry," said Heather Pizzala, director of marketing for Tri-Pointe Credit Union.

"It's to make ourselves stronger and position ourselves better for the future."

The newly joined credit union will have total assets of nearly $160 million and serve more than 31,000 members throughout Genesee, Livingston, Oakland and Tuscola counties, and provide financial services at five offices in Clio, Grand Blanc, Fenton, Flint and Vassar.

It will have about 120 employees combined. No workers are being laid off or branches closed as part of the merger, Pizzala said.

Mack McConnell will remain as the president and chief executive officer of Tri-Pointe.

Joseph Shoenfelt, the president and CEO of Michigan Federal, will retire Sept. 30 after more than 35 years of service.

This merger is considered a voluntary merger of equals, which is not commonplace in the credit union industry, McConnell said.

"Both credit unions are financially strong," McConnell stated in a prepared statement.

"We both serve distinct areas of the community and are committed to continuing to serve those areas where we operate. It is because we share similar service and philosophies with each other that this merger prospect has become so attractive."

Except for the name change at the three Michigan Federal branches, customers should notice no differences, Pizzala said.

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.