Baxter Credit Union seeks merger with HealthCare Associates in Illinois expansion.
The proposed deal would unite two healthcare-focused institutions and add nearly 30,000 members to Baxter Credit Union’s growing footprint.
Baxter Credit Union, a $6.5 billion-asset institution based in Vernon Hills, Ill., has agreed to merge with HealthCare Associates Credit Union, a smaller healthcare-focused lender headquartered in Lisle, Ill., in a deal that would deepen Baxter’s presence in the Chicago area while expanding resources available to HealthCare Associates members.
The two credit unions announced this week that they intend to combine, pending regulatory approval and a vote by HealthCare Associates members. If completed, the transaction would bring together nearly 400,000 members and more than $7 billion in assets, extending a long trend of consolidation across the credit union industry.
The proposed merger pairs two organizations with roots in serving healthcare workers and their families. Together, the institutions say they represent more than 90 years of combined experience in that market.
For Baxter, which serves 369,985 members and reported $6.5 billion in assets, the transaction would add HealthCare Associates’ nearly 30,000 members and $486.4 million in assets. The deal comes as Baxter continues to grow financially. The credit union earned $10.2 million during the first quarter of 2026, up from $5.5 million during the same period a year earlier.
HealthCare Associates, while much smaller, has remained profitable. The Lisle-based institution earned $534,000 in the first quarter, compared with $500,000 a year earlier.
The organizations described the merger as a natural fit given their shared focus on healthcare professionals and their common presence in the Chicago metropolitan area.
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“Both organizations were founded to serve those in the healthcare community, and that shared purpose is still at the center of everything we do,” said Jim Block, Baxter’s executive vice president and chief operating officer, who is slated to become the credit union’s next president.
HealthCare Associates leadership framed the transaction as an effort to preserve the credit union’s identity while gaining access to greater scale.
“For us, this is about honoring who we are while strengthening what comes next,” said Joe Kregul, president and chief executive of HealthCare Associates. “We see a natural alignment in values, culture, and commitment to members.”
Jack Gilbert, chairman of the HealthCare Associates board, said the partnership would enhance the credit union’s capabilities while maintaining the local relationships members value.
Under the proposal, the HealthCare Associates name would remain in place as “HealthCare Associates Credit Union, powered by BCU,” an arrangement intended to preserve the brand’s identity while signaling its connection to the larger institution.
Baxter President and Chief Executive Mike Valentine said the combination would create a stronger organization while maintaining the member-focused approach both institutions emphasize.
“We share a deep respect for the people we serve and for the employees who support them each day as financial first responders,” Valentine said. “Together, we’re combining personalized care with expanded capabilities.”
Members of HealthCare Associates would gain access to a larger branch and ATM network, 24-hour bilingual support, expanded digital banking tools and additional financial wellness resources, according to the announcement.
The proposed transaction arrives as consolidation remains a defining feature of the credit union sector, particularly among smaller institutions seeking greater scale to manage rising technology costs, regulatory demands and member expectations.
Data released this week by the National Credit Union Administration showed the agency approved 27 mergers during the first quarter of 2026. That was down from 35 approvals during the same period a year earlier but slightly above the 26 approved in the first quarter of 2024.
The boards of both organizations have unanimously endorsed the merger. The proposal will now move through the regulatory review process before being presented to HealthCare Associates members for a vote.
If approved, the deal would create a larger healthcare-focused credit union presence in Illinois while extending Baxter’s reach among healthcare workers and their families across the country.
“Together, we will build on that foundation to create even more value for our members and new opportunities for our employees, while preserving the care and personal service people count on.”
– Jim Block
EVP & COO
Baxter Credit Union
Ken McCarthy is manager of marketing communications at Tyfone, where he monitors the credit union industry and contributes to conversations shaping its future. He previously covered credit unions and community banking for American Banker and S&P Global Market Intelligence. He holds a journalism degree from Point Park University and has more than 15 years of experience covering financial services. He is also the author of three literary fiction novels.
