Just before the end of the calendar year, Zeal Credit Union became the 22nd credit union to acquire a bank in 2024 when it entered into a definitive agreement with Gogebic Range Bank, and its holding company West End Financial Corp. The deal elicited calls for heightened regulatory scrutiny from the community banking sector.
Zeal will purchase substantially all $147 million of the Michigan-based bank’s assets and liabilities in an all-cash transaction expected to close in the third quarter of 2025, subject to regulatory approval. Upon closing, the $839 million credit union will have nearly $1 billion in total assets.
“We are excited for the opportunity to partner with Gogebic Range Bank and to improve access to our member benefits in the Upper Peninsula of Michigan and other contiguous market areas,” Zeal President and CEO Julie Kreinbring said in a press release. “Gogebic is a well-managed bank, and we look forward to welcoming their customers and employees into our family. Gogebic’s customers will become members of Zeal with full access to our wide array of products and services and our members will have expanded locations in the Upper Peninsula.”
Zeal is expected to retain most of the bank’s employees and continue to operate its four branches to increase its presence in Michigan’s upper peninsula, giving the credit union 16 branches total in the region.
“We are excited to bring together two organizations focused on exceptional customer service and high-value products, as well as a philosophy of strong community support,” Gogebic Range President and CEO Neil Beckman said in a press release.
The record-setting acquisition prompted Independent Community Bankers of America (ICBA) President and CEO Rebecca Romero Rainey to issue a statement urging federal regulators to examine the implications of credit union-bank mergers on market competitiveness.
“It’s time for policymakers to consider whether the current tax and regulatory framework for credit unions is still warranted in today's marketplace,” Romero Rainey said.
She also cited the FDIC’s September statement of policy on bank mergers, explicitly stating that additional scrutiny may be needed for deals involving credit unions and Federal Reserve Governor Michelle Bowman’s assertions that regulatory disparities between community banks and credit unions distort competition.