Seven credit unions have received approval from the state to form a trust.
The organizers of Credit Union Trust said this week they received approval from the Michigan Department of Insurance and Financial Services’ Office of Banking to proceed with plans to establish the new entity.
Credit Union Trust plans to open late in the first quarter of 2019 and will be headquartered at 31155 Northwestern Highway in Farmington Hills in a leased spaced owned by Community Choice Credit Union.
“We’re pleased and very excited to be moving forward,” said Robert Sajdak, who was named in the application as prospective Credit Union Trust president and CEO. “As we said back in July when we announced our application, now that Credit Union Trust is formally approved, once it is organized, the real work begins, and we will soon begin hiring professionals, implementing plans and contracting for systems and services.”
Organized by seven Michigan-based credit unions, Credit Union Trust will be a Michigan limited-purpose bank and a credit union service organization, or CUSO. Its organizers said it is the first such entity in the state.
Credit Union Trust will offer investment, trust and related services, the Business Journal previously reported. Though technically a bank, it will not make loans or accept deposits.
While credit unions have always been able to provide wealth management services for their members, they were unable to provide fiduciary services such as trusts until the Michigan Credit Union Act of 2016.
Michigan has about 5.23-million credit union members, the organizers said.
The seven member-owned credit unions in the trust
— Alpena Alcona Area Credit Union, headquartered in Alpena with seven locations
— Community Choice Credit Union, headquartered in Farmington Hills with 20 locations
— ELGA Credit Union, headquartered in Burton with 11 locations
— Frankenmuth Credit Union, headquartered in Frankenmuth with 23 locations
— Honor Credit Union, headquartered in Berrien Springs with 24 locations
— Members First Credit Union, headquartered in Midland with 11 locations
— Team One Credit Union, headquartered in Saginaw with 12 locations