LYNN, Mass.–Credit unions with red numbers on their bottom lines that are still paying management bonuses, high capital CUs with no member distributions, and a few cases where members are seeing something from proposed mergers are all part of this latest CU Daily review of what’s taking place as credit unions continue to seek to combine with others.
Below is the first in a two-part series that is the latest installment in the CU Daily’s industry leading coverage of mergers.
Operating in Red, Struggling With Capital, CCU of Lynn Seeks Merger as 2 Execs to Get Payout
Merging Credit Union: Community Credit Union of Lynn, Lynn, Mass.
Assets: $183.7 million
Members: 6,490
Date Chartered: 1955
Date of Member Vote: Jan. 21
Acquiring Credit Union: Rockland FCU, Rockland, Mass.
Assets: $3.43 billion
Members: 206,717
The merger, CCU’s board told members, is a “partnership between two strong local credit unions to combine our energies, resources, talent and cultures to create a combined organization that is positioned to deliver our members even greater value than they receive today…”
The combination, it added, will translate into “lower operating costs by allowing such costs to be spread over a wider membership base. This will allow us to better anticipate and meet the financial needs of our members in a competitive financial services industry and greater community impact.”
CCU also cited “enhanced products, services and technology,” and additional branches and access. It said Rockland FCU has also agreed to contribute $250,000 over a five-year period to support the Community Credit Union Foundation.
Community CU said that one member of its board would have the opportunity serve as an associate board member at Rockland FCU for three years, and one member of its board would be able to serve on RFCU’s supervisory committee.
If the merger is OK’d, CCU President and CEO Nicholas Sarantopoulos is to become market president/Boston North at Rockland Federal, with RFCU President/CEO Kristin P. VanBeek leading the combined organization.
Merger-Related Financial Compensation
Community Credit Union said there will be no distribution of net worth to members, but two people will receive financial compensation if the merger is approved:
- President/CEO Nicholas Sarantopoulos, whose employment agreement with CCU will expire with the merger, will receive a four-year contract with Rockland FCU and be eligible to receive $225,000 per year plus a potential bonus of up to 20% of salary. If terminated not for cause, he will receive a termination payment equal to the amount of compensation that would have been paid for the remainder of the contract’s term. He will also receive $24,967.44 for accrued paid time off benefits.
- Marketing Manager Judi Dugan will be offered employment at RFVCU on an “at will basis” and be eligible to receive severance if her employment is terminated by Rockland Federal not for cause within 18 months of the merger date. The projected total amount of severance Dugan will be eligible to receive is $115,188.
Financial Performance
Community Credit Union posted a loss of $853,032 through Sept. 30, with net worth of 6.95%. Rockland FCU had net income of $21.3 million and net worth of 10.78% as of the same date.
36% Capital, But No Distribution to Members at Everman Parkway FCU
Merging Credit Union: Everman Parkway FCU, Fort Worth, Texas
Assets: $3.91 million
Members: 557
Date Chartered: 1953
Date of Member Vote: Jan. 22
Acquiring Credit Union: America’s Credit Union, Garland, Texas
Assets: $418.1 million
Members: 31,404
Everman Parkway FCU cited three reasons members should vote in favor of merging into America’s Credit Union:
- Increased ranch footprint and expanded FOM, “gaining key counties that management at Everman Parkway Credit Union view as important for future growth opportunities.”
- Maintain the overall capital position; America’s Credit Union has a strong capital position of 14.14% as of June 30, 2025
- America’s Credit Union can bring an enhanced core system and core system and technology, along with additional products and services
Everman Parkway FCU closed 2025 with $7,168 in net income to go with net worth of 36.03%. EPFCU said there would be no net worth distribution because “ownership will be merged into and survive at America’s Credit Union.”
America’s Credit Union had $1.59 million in net income through Sept. 30, with net worth of 14.69%.
CCU of Maryland Seeks to Combine; Payouts for 5 Management Members
Merging Credit Union: Central Credit Union of Maryland, Baltimore
Assets: $41.98 million
Members: 4,482
Date Chartered: 1950
Date of Member Vote: Jan. 27
Acquiring Credit Union: Point Breeze Credit Union, Hunt Valley, Md.
Assets: $960.3 million
Members: 67,900
The board of Central CU said that after careful consideration a merger with Point Breeze CU is in their best interests “for a number of reasons, such as better pricing and services, additional products, enhanced convenience and account access and lower operating costs as a larger institution. The merged credit union will achieve economies of scale which will permit it to better compete in the increasingly competitive financial services industry.”
Central CU had net income of $253,981 as of Sept. 20, 2025, with net worth of 12.27%. Point Breeze had $3.62 million in net income and net worth of 13.59% as of the same date.
Payouts to Management
- CEO Lisa Jester would be entitled to payment and severance of $470,671 payable at $39,222.58 per month for 12 months following consummation of the transaction.
- COO Darlene Terry would be paid $60,000 subject to decrease based o additional Central payments up to the date of the transaction, and would be paid a retention bonus of $116,000 in total based on continued service of 12 months after the merger.
- Controller Tammie Deighan-Vincenti would be paid $74,000 based on continued service of 12 months after the merger.
- Loan Officer Skyi Tejada would be paid a retention bonus of up to $10,000 based on continued service of 12 months after the merger.
- Branch Manager Lynnette Harris would be paid a retention bonus of $10,000 based on continued service of 12 months after the merger.
The Patron Saint of Lost Causes Finds Hope With Another Saint
Merging Credit Union: St. Jude CU, Chicago
Assets: $297,112
Members: 72
Date Chartered: 1958
Date of Member Vote: Jan. 30
Acquiring Credit Union: St. Gregory Parish Credit Union, Chicago
Assets: $426,262
Members: 120
St. Jude CU told members it is “no longer sustainable due to the decrease (in) its field of membership and volunteers to manage the financial institution. Saint Gregory’s Parish Credit Union mirrors the goals and objectives that St. Jude shares.”
SJCU said a “merging dividend” of 6% would be paid in the event the merger was approved.
St. Jude CU had $22,421 in net income through year-end, 2025, with net worth of 34.43% (after the dividend was paid). St. Gregory CU posted $3,004 in net income and had net worth of 12.23% as of the same date.
Operating in Red, Bonuses for Management, No Distribution for Members at LCFCU
Merging Credit Union: Los Colinas Federal Credit Union, Irving, Texas
Assets: $104.3 million
Members: 10,188
Date Chartered: 1955
Date of Member Vote: Feb. 16
Acquiring Credit Union: Texans Credit Union, Richardson, Texas
Assets: $2.39 billion
Members: 137,853
After being founded by a group of Zale employees in 1955, the chairman of Las Colinas FCU said the board was seeking a merger partner that shared its commitment to being a “true force for good and to operating with the highest integrity.”
A merger with Texans CU, LCFCU members were told, will provide them with expanded access to more branches, a stronger suite of loan and deposit products, significant upgrades to online banking and digital services, and ongoing support for its Star Savers Education Foundation.
It also said Las Colinas FCU employees would receive medical, dental and vision coverage at no cost and discounts on other insurance products.
Merger-Related Financial Benefits
Five members of LCFCU’s management are to receive merger-related compensation, including:
- President/CEO Kevin Scott, who is to receive a salary increase of $57,069 per year under a five-year management contract; a retention bonus of $250,000 to be paid out over five years; and a bonus of up to $50,000 for identifying another credit union merger partner.
- Director of People and Communications Destani Anderson, who is to receive a salary increase of $5,00 per year under a two-year employment contract with Texans; $3,000 in relocation assistance, and a 5% retention bonus to be paid three months after the merger of $4,525 (the bonus is available to all LCFCU employees)
- Comptroller Jolynn Godwin, who is to receive a salary increase of $22,286.72 under a two-year contract; accelerated vesting under a 457(b) plan for a total of $7,684.53; $5,500 as result of retention bonus, and $11,000 in a 10% retention bonus to be paid after one year
- Director of Operations Angel Robinson, who is to receive a salary increase of $12,800 per year for two years; $4,800 as part of 5% retention bonus, and $9.600 from 10% retention bonus to be paid one year after merger
- Senior Business Analyst Kayla Flournoy, who is to receive a salary increase of $10,030; $4,500 from the 5% retention bonus, and $4,400 from retention bonus to be paid after one year.
Las Colinas said there would be no distribution of net worth or share adjustment “because it is not in the best interest of the membership and accumulated earnings will serv ethe membership better through expansion of resources and product offerings.”
Financial Performance
Las Colinas FCU posted a loss of $120,193 as of Sept. 30, with net worth of 9.03%. Texans Credit Union has net income of $17.9 million and net worth of 10.93%.
Tiny Bluescope ECU Proposes Crossing State Line in Combo
Merging Credit Union: Bluescope Employees CU, Kansas City, Mo.
Assets: $1.21 million
Members: 739
Date Chartered: 1937
Date of Member Vote: Feb. 24
Acquiring Credit Union: SM FCU, Mission, Kan.
Assets: $77.6 million
Members: 2,383
Bluescope Employees CU said a merger is a good idea because “SM Federal Credit Union is a full-service credit union and will provide additional products and serves to the current members…”
Through Sept. 30, Bluescope Employees had $834 in net income, with net worth of 12.04%. SM FCU posted $568,234 in net income and had net worth of 19.34%.
In Wisconsin, Dairyland Power to Pay Bonus Dividend
Merging Credit Union: Dairyland Power CU, La Cross, Wis.
Assets: $20.4 million
Members: 1,225
Date Chartered: 1952
Date of Member Vote: March 4
Acquiring Credit Union: Gundersen Credit Union, La Crosse, Wis.
Assets: $61.5 million
Members: 3,632
Dairyland Power CU listed the usual reasons for why it needs to merge, including:
- Products and services, and economies of scale
- “More responsive to evolving financial needs.”
- Enhanced digital banking products
- More branch locations
- One DPCU board member will join Gundersen Credit Union
- Employees will be retained
Net Worth Distribution
Dairyland Power said if the merger is approved it will pay a bonus dividend equal to approximately 8.5% of share and certificate balances as of Sept. 2025.
The Financials
Dairyland Power had $306,271 in net income, with net worth of 22.16% as of the Sept. 30. Gunderson Credit Union had $472,920 in net income and net worth of 12.76% as of the end of Q3.
