Augusta-based Maine State Credit Union and Freeport-based Midcoast Federal Credit Union have announced plans to merge, subject to regulatory and member approval.

The combined entity would operate as Maine State Credit Union and have over $725 million in assets and 46,000 members across eight locations in central and Mid Coast Maine. The merger is expected to be finalized in 2021.

In a joint news release issued Wednesday, the credit unions said the goal of the merger is to enhance the organizations’ value to members through innovation, vendor consolidation and the alignment of products and services.

“As we explored this collaboration, we found many synergies in our approach to providing service excellence,” H. Tucker Cole, Maine State’s president and CEO, said in a statement. “We recognize that, together, our members will benefit from expanded service locations, improved technology solutions and highly competitive loan and deposit rates.”

Midcoast President and CEO Joe Gervais said both credit unions share similar values regarding how they treat customers and employees.

“We strongly believe that employee satisfaction is essential to member satisfaction,” Gervais said in a statement. “Finding a partner that is genuinely committed to the professional development of its employees was essential in Midcoast’s decision to partner with Maine State. Together, we will continue to cultivate a workplace that values and empowers its employees.”

Cole would serve as CEO of the merged credit union, with Gervais serving as its president. The combined entity would be headquartered in Augusta with branch locations in Augusta, Bath, Brunswick, Edgecomb, Freeport, Thomaston and Waterville.