After nixing merger, Infinity Federal Credit Union plans another — in same Illinois city
File Photo / Tim Greenway
If a planned merger between Infinity Federal Credit Union and a credit union in Illinois is approved, Infinity President/CEO Elizabeth Hayes would become Maine market president of the new entity.
A year after calling off a planned merger with a credit union in Moline, Ill., Maine-based Infinity Federal Credit Union may merge with another financial cooperative in that same Midwestern city.
Infinity, headquartered in Westbrook, has agreed to merge with Deere Employees Credit Union, according to a news release Thursday evening. Terms of the deal were not disclosed, and it still needs regulatory and member approval.
Under the agreement, each credit union will retain local control, as well as its name and branches, the release said. Systems and services will remain unchanged, and no reductions in Infinity's 90-person staff are planned.
Deere, based in Moline, has $1.2 billion in assets and 42,000 members. The credit union was founded in 1935 to serve employees of Deere & Co. (NYSE: DE), a heavy equipment manufacturer better known by its founder’s name, John Deere.
That company is also headquartered in Moline, a city of 44,000 about 165 miles west of Chicago.
Infinity ranked as Maine’s fifth-largest credit union last year, with 2018 assets of $345 million and 18,200 members. It has five branches: at the Westbrook base, and in Arundel, Bangor, Portland and Scarborough, where a branch opened last December.
In August 2019, Infinity announced plans to merge with Moline-based Vibrant Credit Union, but nixed the deal a month later. Infinity President/CEO Elizabeth Hayes told Mainebiz at the time, “As talks progressed, our ability to maintain local decision-making came into question, making the merger less beneficial for our members and employees."
Hayes also said last year that Infinity would continue looking for other merger opportunities.
In Thursday's release, Hayes and DECU President/CEO Kurt Lewin described the aim of the new merger by saying, "The goal is to combine resources for mutual benefits driving further growth and expansion in our communities and offering more benefits to our members.”
Last week, Infinity described the planned merger in a website post: “After exploring local merger options and walking away from the Vibrant merger last fall because it was not a good fit, Infinity FCU was very careful in selecting the right merger partner. DECU supports Infinity FCU’s culture, has a shared philosophy of making a difference in the lives of our members, and is driven to grow by building relationships founded on trust.”
Deja vu all over again
In some ways, Infinity’s new potential partner resembles its previous one. Coincidentally, Vibrant dates to 1935 when it was founded by eight John Deere employees as Deere Harvester Credit Union. The Moline credit unions are also roughly the same size.
But Vibrant now serves employees at dozens of companies, as well as residents across counties in Illinois, Indiana, Iowa and Wisconsin. Membership of Deere Employees Credit Union, in contrast, is exclusive to John Deere’s 60,000 worldwide employees, their family members and company retirees and contractors.
Pending merger approval, the combined credit union would be headquartered in Moline and headed by Lewin. Hayes would serve as Maine market president.
Infinity would fill two seats on the combined credit union’s board, “ensuring that members in Maine continue to be represented,” the website post said.
Credit unions in Maine appear to be undergoing a surge of mergers and consolidation.
On Oct. 7, Maine State Credit Union and Midcoast Federal Credit Union announced that they plan to merge, creating what would be the largest credit union headquartered in the state, with over $725 million in assets. In June, Augusta-based Connected Credit Union and Winslow Community Federal Credit Union completed a merger.
Earlier this week, Maine Credit Union League President and CEO Todd Mason told Mainebiz, “Credit unions always are looking for ways to grow and strengthen their ability to serve their members and communities. While there are a variety of approaches credit unions can take, consolidating resources and diversifying fields of membership is one of them.”
Editor's Note: This story, which Mainebiz originally published Thursday morning, has been updated to reflect information provided that evening.
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