LAWRENCE, Mass.–The CU Daily’s latest review of the statements to members about proposed mergers by credit unions has found a higher-than-usual number of CU management teams that will receive payouts if their plans are approved, even at credit unions with negative net income, as well as a few that are also returning some capital to members.
In one case a credit union is paying out nearly $500,000 to cover “health insurance” expenses.
There are also a higher-than-usual number of member comments on proposed mergers (although that figure is relative, as often there are no comments) to be found on the comment page NCUA provides for announcements of mergers.
Below is the first in a multi-part series this week on what members are being told about why their credit union needs to be merged, what they might receive (in most cases nothing), which CUs plan to make payouts to management, and more.
ACU Has Consistently Lost Money; Plans $1.68M Payout to Management
Merging Credit Union: Arrha Credit Union, Springfield, Mass.
Assets: $163.1 million
Members: 9,851
Year Chartered: 1929
Date of Member Vote:
Acquiring Credit Union: BrightBridge Credit Union, Lawrence, Mass.
Assets: $2.1 billion
Members: 115,027
A credit union that has posted losses for 11 consecutive quarters is seeking to merge, with a payout package of more than $1.5-million planned for senior executives should the deal be approved.
In its disclosure to members, Arrha Credit Union said, “Both Arrha and BrightBridge are, measured in financial terms, relatively small in comparison to competing financial institutions. Arrha’s modest resources limit its ability to invest in technology and other services that members increasingly demand.”
A combination, Arrha said, would provide a larger branch network and broader array of products and services, including online banking, FHA and VA mortgages, checking accounts, and more.
According to Arrha CU, there will be no reduction in staff if the merger is approved and its lone office will remain open. BrightBridge has approximately 20 branches.
No Capital Distribution
Arrha said there would be no capital distribution to members since it is “unnecessary because Arrha would not be able to obtain sufficient growth on a standalone basis to project a valuation that warrants any adjustment in shares.”
Merger-Related Compensation
It will, however, be able to make payments to five members of its management team, who are to receive relatively substantial amounts in severance if the merger is completed that total more than $1.58-million, according to its statement to members, including:
- CEO Michael S. Ostrowski, who is to receive severance pay equal to two years’ salary if he resigns his employment with BrightBridge on Dec. 31, 2026. No severance will be paid if he is terminated for cause. The total payout is to be $488,000.24.
- CFO Harry C. Moore, who has similar terms, and is to be paid a total of $400,000.12 via weekly payments over a 24-month period.
- EVP and Chief Lending Officer Robert S. Ciraco, who has similar terms, and is to be paid a total of $294,902.40 via weekly payments over a 24-month period.
- Senior Commercial Loan Officer and VP-Commercial Lending Anthony Franco, who has similar terms, and is to be paid a total of $258,003.20 via weekly payments over a 24-month period.
- VP-Operations Allison Harland, who has similar terms, and is to be paid a total of $248,102.40 via weekly payments over a 24-month period.
Arrha posted a $308,464 loss through Sept. 30, with net worth of 7.79%. It lost $184,652 at year-end 2024. Total cumulative net income over the past 11 quarters is -$45,000. BrightBridge CU reported $6 million in net income and had net worth of 10.42% as of the same date.
Member Comment
One member comment was filed with NCUA:
- Why does ARRHA have to combine with BrightBridge in such a short period of time?
One Member ‘Baffled’ by Need for Merger
Merging Credit Union: First Coast Community Credit Union, Palatka, Fla.
Assets: $149.6 million
Members: 11,834
Year Chartered:1971
Date of Member Vote: Oct. 30
Acquiring Credit Union: Radiant Credit Union, Gainesville, Fla.
Assets: $895.1 million
Members: 49,621
In its message to members, First Coast Community told members a merged credit union will (a) possess additional economies of scale that will increase financial strength and stability, (b) offer additional products, services and technologies that will enhance the experience to all members, (c) offer additional branch locations to all members, and (d) increase community services; specifically financial education and social services to our combined communities.
First Coast Community Credit Union said its disclosure that its branches will remain open as branches of Radiant Credit Union for at least three years following the merger and will continue to operate as branches of Radiant Credit Union thereafter as long as the branches “remain economically viable for the Continuing Credit Union. A list of Radiant Credit Union’s current locations.”
Financial Considerations
First Coast said EVP Sandra Prevatt will receive merger-related compensation as she now has a contract that runs through Jan. 2, 2027.
“Ms. Prevatt’s salary and benefits were not increased pursuant to this employment contract, but she did not have a previous contract with First Coast Community Credit Union prior to the execution of this employment contract,” FCCU said. “This employment contract will be binding on the Continuing Credit Union in the event the merger is approved by the First Coast Community Credit Union members who vote. The First Coast Community Credit Union Board of Directors and the Continuing Credit Union feel that Ms. Prevatt’s continued employment with the Continuing Credit Union is important to the success of the merger and the Continuing Credit Union…”
Financial Performance
Both credit unions are profitable. First Coast reported $927,777 in net income for the first three quarters of 2025, with net worth of 13.23%. Radiant CU posted $4.63 million in net income and net worth of 9.09% as of Sept. 30.
Member Comments
Two members filed comments on NCUA’s website related to the merger:
- I think this is a bad idea, just read between the lines, when I went to Radiant credit web page, they have all changed it to reflect the merger.
- As a member of First Coast Community Credit Union I am baffled why our Board of Directors wants this merger. First Coast is a great local credit union with three times the cash assets and one third the branches that Radiant has. Our board of directors claim this will enhance and increase community services and yet the merger allows Radiant to close any of our 3 locations after 3 years if they feel we are no longer viable. What am I missing? I feel like there is something else going on so count on a no vote from me.
Combination Would Create $9-Billion Credit Union
Merging Credit Union: CommunityAmerica Credit Union, Lenexa, Kan.
Assets: $5.44 billion
Members: 380,564
Year Chartered: 1940
Date of Member Vote: Oct. 31
Acquiring Credit Union: Unify Financial CU, Allen, Texas
Assets: $3.42 billion
Members: 241,455
As the CU Daily reported here when this merger was first announced, the $5.4-billion CommunityAmerica CU in Kansas, which has 374,452 members, is looking to merge with the $3.48-billion UNIFY Financial Credit Union in Allen, Texas, which has 244,424 members.
At midyear, CACU had $32.3 million in net income and net worth of 8.81%, while Unify Financial had $21.5 million in net income and net worth of 10.16% as of the same date.
CommunityAmerica will be the surviving name and brand, and the headquarters will remain in Lenexa, Kan.
The merged CU would have a presence in 18 states and 22 markets, with branches in Arkansas, California, Nevada, Tennessee and Texas, according to the organizations. The two CUs are approximately 460 miles apart.
Letter to Members
In a letter to members that is included on NCUA’s site for merger-related information, CommunityAmerica CU CEO Lisa Ginter wrote, “Now, we have an opportunity to expand our reach and create more access to CommunityAmerica for you, your families, and even more people across the country. I’ve always led CommunityAmerica with goals that are defined by how many people we can help–not by how much revenue we can generate. That is the driving force behind a transformative milestone in our credit union’s history–and the reason I am writing to you.”
The letter says for the past several months the evaluation of a merger with UNIFY Financial has been under way, and that it has already “created a shared services agreement that was endorsed by the National Credit Union Association (sic) NCUA), which allowed us to oversee key areas of their business and ensure their operations align with our current and future goals.”
Benefits Cited
Ginter, who will be CEO of the merged CU, said members will benefit from:
- The addition of new branches and ATMs
- Expanded hours and service with the “bench strength of UNIFY Financial FCU’s call center…”
- With new teammates and an enriched talent pool
“The scale of this merger creates more resources that will be reinvested in our members and communities,” Ginter wrote.
Financial Performance
As of Sept. 30, CommunityAmerica CU posted $37.1 million in net income, with net worth of 10.34%. Unify Financial reported $33.1 million in net income and net worth of 8.98% as of the same date.
Member Objections
The merger proposal drew an unusually high number of member comments, including:
- My local credit union is starting to become just another mega financial institution. I am voting against this merger.
- I oppose the merger. We do not need another merger to attempt to monopolize the banking industry
- Update to my original post. After speaking directly with Lisa Ginter the CEO of CommunityAmerica much more positively. She addressed each and every concern I raised with the absolute professionalism and accuracy.
I am more at ease with this merger as a Unify Member I feel after discussing the concerns it may actually be a good thing. If I was a Community American member I would at this point vote yes!
I was not expecting a direct response and was delighted to receive one. This proves to me she is someone who cares for memes of her credit union
- As a member of Unify Financial Federal Credit Union, I understand that I do not have a vote regarding this proposed merger. However, from every indication, this merger appears to be a complete takeover by CommunityAmerica Credit Union — effectively absorbing our charter, our identity, and our operations.
- The CEO of CommunityAmerica is set to assume leadership of our credit union, while our headquarters will be relocated to Kansas. In the letter sent to CommunityAmerica’s members, the merger was described as an opportunity to keep expanding in the St. Louis, Missouri market and to extend operations into 18 states under our federal charter — all seemingly at the expense of Unify Financial Federal Credit Union and its members.
- If Unify is truly the continuing credit union, as stated, then our CEO should remain in place and our headquarters should stay where it currently resides. The current arrangement does not reflect that, and the situation appears misleading at best.
I am deeply disappointed and firmly opposed to this merger. It is my belief that CommunityAmerica is, in essence, taking over Unify while using our federal charter to do so — and the fact that Unify’s members have no vote or meaningful say in this process is both unfair and unacceptable.
- I’m voting no to keep our credit union local. Mergers profit the organization, but not necessarily the customer.
- No. I am voting against this proposed merger because I think that a merger connecting funds with California is too risky. The financials look good to me without the merger.
- These mergers NEVER benefit the customers.
- Does this merger connect the credit unions to the FedNow program upon the merger or in the near or distant future? I’m always skeptical to take local business’s (sic) and merge them with out of state business’s and I’m very skeptical of the banking industry. We love CACU because it’s local and It’s NOT tied to the FedNow program.
30% Bonus to be Paid if Deal is Approved
Merging Credit Union: District 123 FCU, Oak Lawn, Ill.
Assets: $2.032 million
Members: 268
Year Chartered: 1965
Date of Member Vote: Nov. 12
Acquiring Credit Union: Illiana Financial CU, Calumet, Ill.
Assets: $252.6 million
Members: 21,004
District 123 FCU said there are four reasons members should vote in favor of merging:
- A larger selection of products and services
- A 30% bonus divided will be paid on shares
- Illiana Financial has facilities in close proximity to those of District 123 FCU
- Illiana Financial offers electronic and mobile services that it does not
The credit union said D123FCU manager K. Frederick has been offered employment with the combined credit union, and will also be paid a severance of $30,897.60, regardless of whether she remains employed.
District 123 reported a $20,338 loss through Sept. 30, with capital at 33.87%. Illiana Financial posted $1.045 million in net income and had net worth of 17.8% as of the same day.
Manager Set to Retire; Special Dividend to be Paid
Merging Credit Union: Hempfield Area FCU, Greensburg, Penn.
Assets: $5.26 million
Members: 508
Year Chartered: 1959
Date of Member Vote: Nov. 12
Acquiring Credit Union: Norwin Teachers FCU, North Huntington, Penn.
Assets: $32.8 million
Members: 2,991
Hempfield Area FCU’s board told members simply that the merger would result in an additional branch, ATM access, expanded hours and “various products and services,” while further noting its manager is planning to retire.
If the merge is approved, Hempfield Federal said it plans to pay a special dividend of 15.5%, or approximately a $261,000 payout to members overall.
The credit union said its manager Nadeen Bartlett, would be paid one month of severance worth $2,755, while Office Assistant Debbie Capozzi would be paid $925.
Hempfield Federal had $33,173 in net income during the first nine months of the year, to go with its capital ratio of 21.29%. Norwin Teachers reported $329,711 in net income, with net worth of 9.56%.
An Alignment in Faith
Merging Credit Union: CommonRoots Federal Credit Union, Cranberry Towns, Penn.
Assets: $15.4 million
Members: 1,755
Year Chartered: 1953
Date of Member Vote: Nov. 14
Acquiring Credit Union: Christian Family CU, North Canton, Ohio
Assets: $77.9 million
Members: 3,524
CommonRoots FCU told members a merger will provide them with additional products and services (it provided a long list of bullet points), staffing support for operational challenges, staff opportunities, and an “alignment of values.”
The credit union noted that “in 2020, the credit inion expanded its field of membership to be inclusive of other similar-minded Christian faiths, serving multi- faith congregants throughout the state of Ohio.”
CommonRoots FCU lost $47,776 through Sept. 30, with net worth of 9.36%. Christian Family had $163,350 in net income and net worth of 14.65% as of the same date.
Modern Employees Seeking to Modernize With Merger (After $500K Loss)
Merging Credit Union: Modern Employees FCU, Owensboro, Ky.
Assets: $5.6 million
Members: 517
Year Chartered: 1953
Date of Member Vote: Nov. 18
Acquiring Credit Union: Whitesville Community Credit Union, Whitesville, Ky.
Assets: $33.1 million
Members: 2,315
Modern Employees FCU, which posted a loss equal to 10% of its asset size, told members, “Assessing the needs of our members over the years Modern Employees Federal Credit Union sought opportunities to offer better physical infrastructure, and additional products and services. Whitesville Community CU shares Modern Employees Federal Credit Union(‘s) vision for delivery of innovative products and services with consideration for the financial well-being of our members.”
The merger would provide an additional branch location, more comprehensive digital services, and an “array of loan products with more tailored terms,” MEFCU told members.
Modern Employees had a loss of $526,375 and net worth of 8.39% as of Sept. 30. Whitesville Community CU posted $389,942 in net income to go with capital of 11.76% as of the same date.
Payouts for Management in Connecticut
Merging Credit Union: CrossPoint FCU, Hamden, Conn.
Assets: $157.8-million
Members: 10,260
Year Chartered: 1936
Date of Member Vote: Nov. 19
Acquiring Credit Union: Nutmeg State Financial CU, Rocky Hill, Conn.
Assets: $716.8 million
Members: 55,418
CrossPoint CU told members the merger will bring “significant and lasting value”: to members in the form of new branches, surcharge-free ATMs, products and services, and a stronger combined credit union. This will include, it said, Nutmeg State’s “Products with a Purpose” offering, which is for underserved population.
The disclosure to members include a long list of bullet-pointed items it said are all benefits of the combination, and also cited lower operating costs.
Payouts to Management
If the merger is approved, CrossPoint FCU plans to pay bonuses to a number of senior executives, including:
- President and CEO Darlene White. The CU said White will play “an important strategic advisory leadership role” with the combined credit union after the merger and will receive a three-year contract at her current rate of pay. She will be eligible to receive a severance opportunity if terminated without cause during the term of the agreement equal to the remaining term of the contract. CrossPoint said White will also receive a $400,000 retention bonus at the legal merger date and a retention bonus of $400,000 if she remains with the continuing credit union for one year after the legal merger date.
- VP-Operations and IT Manager Ken Innocenzi. Innocenzi is to receive a three-year contract at his current rate of pay and will be “eligible to receive a severance opportunity if he is terminated without cause during the term of the agreement equal to six months of his then current salary.
- VP-Business Development, Marketing and Branch Banking Armand Muniz. Muniz is to receive a three-year contract at his current rate of pay and will be “eligible to receive a severance opportunity if he is terminated without cause during the term of the agreement equal to six months of his then current salary.
- VP-Administration Cheryl Rich. Rich is to receive a three-year contract at his current rate of pay and will be “eligible to receive a severance opportunity if he is terminated without cause during the term of the agreement equal to six months of his then current salary.
CrossPoint FCU reported $600,982 in net income and net worth of 10.97% as of Sept. 30. Nutmeg State had $3.36 million in net income and net worth of 12.58% as of the same date.
Member Comments
There are two member comments to be found on the NCUA site:
- I am in favor of the merger. I believe it will help clients of Crosspoint and Nutmeg.
- Is CrossPoint FCU located in West Chester, PA? (This comment appears because the NCUA site lists it as being in West Chester, Penn.)
Money Losing FCFCU Says First Choice is First Choice; Payouts for 4 People
Merging Credit Union: Family 1st FCU, New Castle, Penn.
Assets: $15.6 million
Members: 1,686
Year Chartered: 1951
Date of Member Vote: Nov. 19
Acquiring Credit Union: First Choice FCU, New Castle, Penn.
Assets: $78.1 million
Members: 7,825
Family 1st was brief in explaining why it needs to merge. “The board od directors has concluded that the proposed merger is desirable and in the best interests of members. This will ensure the continuation of uninterrupted service to our members; financial needs,” it said.
Payouts to 4 People
Four people are being paid merger-related payments, including:
- Bookkeeper Darlene Maravelli: $18,855
- Loan Assistant Joanne Wolley: $18,346
- Member Service Rep Susan Preisel: $12,917
- Member Service Rep Patricia Dwyer: $8,51
Family 1st had a $72,072 loss through Q3, with net worth of 12.87%. First Choice reported $952,853 in net income and net worth of 11.53% as of the same date.
CEO Retiring, Office Space Being Lost, and Losses Posted
Merging Credit Union: S.T.P. Employees FCU, Duncansville, Penn.
Assets: $886,563
Members: 239
Year Chartered: 1976
Date of Member Vote: Nov. 24
Acquiring Credit Union: A.B. Federal Credit Union, Duncansville, Penn.
Assets: $8.9 million
Members: 843
S.T.P. EFCU was succinct in listing the reasons it needs to merge:
- Retirement of the office manager and sole employees
- Loss of physical office space
It also said the merger would provide a number of new service offerings.
S.T.P. FCU had $873 in net income and net worth of 25.97%. It did not indicate any plans to pay out some of its capital. A.B. FCU posted a loss of $43,577 as of Sept. 30, with net worth of 13.65%.
If the merger is OK’d, S.T.P. EFCU said it will distribute a portion of its net worth to members as 3.6% of the member’s regular share account average from April 1-Sept. 30.
Payout to Manager
The credit union said it will pay Office Manager Shari Brown $15,000 for her 32 years of service.
25% Bonus to be Paid
Merging Credit Union: St, Norbert’s CU, Pittsburgh
Assets: $313,313
Members: 65
Year Chartered: 1935
Date of Member Vote: Nov, 25
Acquiring Credit Union: Century Heritage FCU, Pittsburgh
Assets: $287.1 million
Members: 18,632
One of two CUs currently seeking to merge into Century Heritage FCU, St. Norbert’s CU (named for the patron saint of expectant mothers, the country of Bohemia (modern-day Czech Republic), priests, peace, and farmers, was brief in its notice to members: it said the combo would provide for more services and branches.
The credit union said it does intend to pay a 25% bonus dividend if the merger gets the OK.
St. Norbert’s lost $977 through Sept. 30, with net worth of 33.27%. Century Heritage had $1.19 million in net income and net worth of 10.8% as of the same date.
‘More Services & Branches’
Merging Credit Union: McKeesport Congregational FCU, McKeesport, Penn.
Assets: $228,735
Members: 66
Year Chartered: 1937
Date of Member Vote: Nov. 30
Acquiring Credit Union: Century Heritage FCU, Pittsburgh
Assets:$287,1 million
Members: 18,632
The second of two CUs looking to merge into Century Heritage FCU, McKeesport Congregational FCU used the same language as St. Norbert’s FCU in explaining why a merger would be a good thing: the combo would provide for more services and branches.
McKeesport Congregational FCU had $2,990 in net income through Q3 to go with capital of 10.04%. Century Heritage had $1.19 million in net income and net worth of 10.8% as of the same date.
CU Cites Decades of Poor Income; Plans 100% Dividend; $500K for ‘Health Insurance’ for Execs, Retirees
Merging Credit Union: Focus First FCU, Rochester, N.Y.
Assets: $10.8 million
Members: 903
Year Chartered: 1955
Date of Member Vote: Dec, 1
Acquiring Credit Union: Family First of NY FCU, Rochester, N.Y.
Assets: $329.2-million
Members: 14,742
A credit union that is paying out nearly $500,000 for what it said is to cover the cost of health insurance, including to two retired employees, also said it needs to merge because it has been unable to achieve positive income since 2008 and has lost members since the closing of its primary sponsor, Velero, in the early 2000s.
“Shares and loans have decreased despite advertising efforts and an indirect lending program with the area auto dealers,” Focus First Credit Union said. . “Expenses associated with indirect lending, technology and high dividends paid to members (in order to maintain liquidity) have all contributed to the net losses. The NCUA has recommended a merger…,”
Family First stressed that its lone branch remain open and all current staff shall remain employed.
FFFCU said it plans to pay a 100% dividend along with 50% payout of loan interest paid year to date to a maximum of $5,000 per member.
Merger-Related Compensation
Family First said it will also pay merger-related compensation to four people, for what it said in all four cases was for the cost of health insurance, including:
- Richard Wetzel, retired CEO: $84,000
- Louise Lombardo, retired teller: $4,400
- Scott Neal, CEO: $200,000
- Colleen Gaesser, office manager, $200,000
Focus First lost $168,208 through the first three quarters of 2025, with net worth of 43.69%. Family First had $1.39 million in net income and net worth of 11.13% as of the same date.
