Two Michigan credit unions plan merger as industry consolidation accelerates.
A proposed tie-up between LOC Credit Union and Advantage One Credit Union would create a $750 million institution serving members statewide as smaller lenders grapple with rising technology costs and competitive pressure.
Two Michigan credit unions said this week that they plan to merge, joining a growing wave of consolidation reshaping the financial cooperative industry as institutions seek greater scale to keep pace with technology demands and shifting consumer expectations.
Under the proposed deal, LOC Credit Union of Farmington and Advantage One Credit Union of Brownstown would combine into a roughly $750 million institution serving more than 47,000 member accounts across the state.
The merged organization would operate under the Advantage One Credit Union name, while maintaining headquarters in Farmington. It would run nine branches spanning southeast Michigan, including locations in Dearborn, Brighton, Brownstown, Farmington, Howell, Hartland, Southgate and Taylor.
The boards of both credit unions unanimously approved the merger proposal in late 2025 after what the institutions described as months of discussions. The transaction still requires approval from Advantage One members, who are expected to vote later this summer. If approved, system and brand integration is anticipated in May 2027.
The deal reflects broader pressures facing community-based credit unions nationwide. Rising investments in digital banking, cybersecurity and mobile technology have pushed many smaller institutions to pursue mergers as a way to spread costs across larger membership bases.
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The National Credit Union Administration approved 157 mergers in 2025, following 162 in 2024 and 145 in 2023, underscoring the steady pace of consolidation across the sector.
“This merger allows us to deliver products and services in a more efficient manner while enhancing the overall experience for our members through an expanded retail banking footprint,” Paul Renko, chairman of LOC Credit Union’s board, said in a statement.
Renko added that both institutions already operate on the same core processing and digital banking systems, which he said would create a smoother integration while allowing the combined organization to achieve economies of scale.
Advantage One Chairman Richard Lindemann framed the merger as a response to changing member expectations and mounting competitive pressures.
“While both credit unions are financially strong and considered well-capitalized, our industry continues to demonstrate a need for fast-paced growth in technology,” Lindemann said. “We also recognize that as technology evolves, so do the expectations that our members have of us.”
LOC Credit Union has nearly 27,700 members and $483.4 million in assets, according to NCUA call report data. It earned $1.3 million during the first quarter of 2026, up from $962,000 during the same period a year earlier.
Advantage One Credit Union has roughly 17,800 members and $266 million in assets. It reported first-quarter earnings of $873,000, compared with $980,000 a year ago.
Leadership of the combined organization is expected to transition gradually. Stephen Grech, LOC’s current president and chief executive, would remain CEO until his anticipated retirement. Chris Corkery, Advantage One’s president and CEO, would become president of the merged institution. Both senior leadership teams are expected to remain in place, and the organizations said no job reductions are planned as a result of the merger.
The decision to retain the Advantage One name was driven partly by marketing considerations, according to a frequently asked questions page posted by LOC.
Because the LOC name historically referred to Livingston and Oakland counties, executives concluded that Advantage One would resonate more broadly as the institution expands beyond its traditional geographic footprint.
“We don’t want potential members to have to ask, ‘What does LOC stand for?’ and be a barrier to growth,” the credit union said on its website.
LOC itself was formed through a merger in 2022 between LOC Federal Credit Union and MemberFocus Community Credit Union. Advantage One traces its roots to 1952, when it was founded as McLouth Employees Federal Credit Union serving workers at McLouth Steel Corporation. The institution converted to a state charter in 2016 and expanded membership eligibility statewide in 2020.
The merger proposal also highlights how credit unions increasingly view strategic partnerships as essential to remaining competitive against larger banks and digital-first financial firms.
On its website, LOC described merger activity as a central part of its strategic plan, citing the need for operational efficiency, stronger talent recruitment and greater member relevance in a rapidly evolving financial services market.
For many midsize credit unions, the question is no longer whether consolidation will continue, but how large institutions must become to compete effectively in a business increasingly shaped by technology, scale and statewide reach.
“While both credit unions are financially strong and considered well-capitalized, our industry continues to demonstrate a need for fast-paced growth in technology.”
– Richard Lindemann
Chairman
Advantage One 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.
