HAMILTON, N.J.–A credit union with net worth of more than 80%, several member payouts, retirements driving combinations, and one entire board joining another can all be found in this second-part of a two-part series this week in the CU Daily on credit union mergers.
The reporting below and in part I is based on the merger information credit unions are required by NCUA to provide to members.
CU That’s Losing Money Seeks to Merge Into Another That Was in the Red at Mid-Year
Merging Credit Union: Mercer County Improvement Authority FCU, Hamilton, N.J.
Assets: $424,125
Members: 202
Date Chartered: 1936
Date of Member Vote: Oct. 11
Acquiring Credit Union: Peoples Transport FCU, Mt. Ephraim, N.J.
Assets: $12.2 million
Members: 1,385
In a brief statement, MCIAFCU said the merger is a good idea because Peoples Transport FCU offers a “wide range of services, including savings accounts, loans, online banking and more…”
MCIAFCU posted a loss of $2,812 as of midyear, with net worth of 7.48%. People’s Transport FCU lost $3,088 as of June 30, with net worth of 10.04%. It had $7,840 in net income for 2024.
Losing Money and Undercapitalized, HCFCU Looks to Sterling Solution
Merging Credit Union: Haxtun Community FCU, Haxtun, Colo,
Assets: $5.73 million
Members: 715
Date Chartered: 1938
Date of Member Vote: Oct. 14
Acquiring Credit Union: Sterling FCU, Sterling, Colo.
Assets: $232.6 million
Members: 10,216
According to the undercapitalized Haxtun Community FCU, the benefits of merging include:
- The best opportunity to maintain a local, healthy CU
- Increased convenience and improve service due to two additional branches
- New and enhanced products and services
- Expanded loan services, including real estate/HELCs
- Increased online services
For both CUs, HCFCU said the benefits include increased capital and financial strength, enhanced member value, operational cost-savings, greater market presence and shared cultures and values.
Haxtun Community CU is struggling, reporting $47,615 in losses at mid-year to go with a 5.31% net worth ratio. Sterling FCU had $1.6 million in net income and net worth of 16.71 % as of the same date.
Manager Retiring and ‘No Volunteers’ Left, Says MSBFCU
Merging Credit Union: Morning Star Baptist FCU, Clairton, Penn.
Assets: $294,924
Members: 274
Date Chartered: 1972
Date of Member Vote:
Acquiring Credit Union: Tri Boro FCU, Munhall, Penn.
Assets: $125.8 million
Members: 7,701
“The merger is intended for the welfare of the membership after the board of directors recognized that there are no volunteers to run the credit unions daily operations as (manager) Joyce Hammons is retiring,” the credit union told members.
It added that a merger would increase growth and the ability to “instantaneously provide the membership with a full-service credit union,” including “advances in technology.”
Morning Star Baptist had $3,098 in net income and a whopping net worth of 34.04%, although it said it would not be distributing any of the capital. Tri Boro had $483,627 in net income and net worth of 14.23% as of the end of Q2.
A Whopping 83% Capital Ratio (Yes, There Will be Small Payout)
Merging Credit Union: SunComp Employees FCU, Bristol, Va.
Assets: $3.51 million
Members: 240
Date Chartered: 1976
Date of Member Vote: Oct. 20
Acquiring Credit Union: United Southeast FCU, Bristol, Tenn.
Assets: $241.1 million
Members: 22,698
In what may be the closest of mergers that involve crossing state lines—the Tennessee/Virginia boundary runs through the middle of town–SunComp Employees FCU told members a merger is in their best interests because of employee availability, service continuation, better pricing and services, additional products, lower operating costs and more.
SunComp EFCU said it will distribute $60,000 of its net worth to members.
SunComp Employees posted a loss of $39,542 at mid-year, with net worth of an incredible 82.93%. United Southeast FCU posted $985,125 in net income and had net worth of 12.40% as of the same day.
Saying Core Vendor is ‘Ceasing Operations,’ Merger Seen as Best Reward
Merging Credit Union: Plumbers 55 FCU, Brooklyn Height, Ohio
Assets: $2.95 million
Members: 1,018
Date Chartered: 1967
Date of Member Vote: Oct. 21
Acquiring Credit Union: Best Reward FCU, Brook Park, Ohio
Assets: $159.7 million
Members: 11,651
Plumbers 55 FCU said it needs to merge because its core system vendor is “ceasing operations at year-end,” and also cited expanded and enhanced products, efficiencies, regulatory expertise, and more, including additional branches, as other reasons to vote in favor of merging.
P55FCU had $6,584 in net income through the first six months of the year to go with net worth of 18.40% (it said no distribution is planned). Best reward FCU had $402,363 in net income and net worth of 15.07% as of mid-year.
Dying Members Cited as Reason to Merge; All Board Members to Join New Board
Merging Credit Union: ECCO Credit Union, Pace, Fla.
Assets: $17.3 million
Members: 955
Date Chartered:
Date of Member Vote: Oct. 21
Acquiring Credit Union: Harvesters FCU, Cantonment, Fla.
Assets: $291.5 million
Members: 32,518
“Our membership base is again and, over time, we have experienced a decline in deposits as long-time members pass away, their beneficiaries transfer funds to other institutions. Additionally, we have been unable to secure a permanent president to lead the credit union into its next chapter,” ECCO CU’s board told members.
ECCO Credit Union said that among the reasons to vote for the merger is that all board members will join the board of Harvesters FCU–:ensuring your voice remains represented”—and that its three staff members will also join HFCU.
It also cited expanded product and service offerings.
ECCO CU said all members will receive a one-time dividend of $250 if the merger is approved.
ECU had $94,943 in net income as of June 30, with net worth of 30.33%. Harvesters FCU posted $268,523 in net income and had net worth of 8.09% as of the same date.
Staff Retirements & No ‘Suitable Replacements’ Cited
Merging Credit Union: Provo Police and Fire Department CU, Provo, Utah
Assets: $1.8 million
Members: 779
Date Chartered: 1949
Date of Member Vote: Oct. 24
Acquiring Credit Union: Freedom CU, Provo, Utah
Assets: $66.1 million
Members: 3,900
“The board of directors has concluded that the proposed merger is desirable and in the best interests of members because current employees are ready to retire and no suitable replacements have been identified,” PPFDCU told members. “Merging with a larger credit union that offers more products and services and that also focuses on developing personal relationships with members will provide credit union members with continuity of service.”
Provo Police & Fire said if the merger is approved it will pay a one0-time special dividend on all regular shares based upon each account’s preceding six-month average monthly balance in an amount estimated to be between 1.5% and 2% of the member’s average balance. The total payout would not exceed $30,000.
Two people are to be paid one-time severance upon retirement: CEO Sheldon Linsay and VP/Treasurer Becky Smith, each of whom is to receive $3,000.
PPFFCU had $4,769 in net income and net worth of 21.50% at midyear. Freedom CU had $156,560 in net income and net worth of 10.64% as of the same date.
Just Four Years After Being Chartered, Merger Sought
Merging Credit Union: Capital Credit Union, Lubbock, Texas
Assets: $6.6 million
Members: 782
Date Chartered: 2021
Date of Member Vote: Oct. 28
Acquiring Credit Union: Santa Fe Credit Union, Amarillo, Texas
Assets: $214.6 million
Members: 13,755
In its brief comments, Capital CU, which was chartered in October of 2021, said a merger will allow it to be more competitive in the local area of Lubbock as well as add additional branches and resources.
Capital CU had $19.260 in net income and net worth of 21.48% (it did not indicate any plans for a capital distribution) as of June. 30. Santa Fe CU had $684,862 in net income and net worth of 12.64% as of the same date.
