INDIANAPOLIS—In part two of this two-part series in the CU Daily’s newest review of merger proposals, the review finds boilerplate messages, more payouts to management, a ‘chief faith officer,’ members calling a combo ‘troubling,’ and more. Part 1 can be found here.
In the Heartland, a Merger for a ‘Stronger Future’
Merging Credit Union: Heartland CU, Inver Grove Heights, Minn.
Assets: $173.9 million
Members: 10,905
Year Chartered: 1939
Date of Member Vote: March 31
Acquiring Credit Union: Novation Credit Union, Oakdale, Minn.
Assets: $241.7 million
Members: 14,498
In its message to members, the board of Heartland CU said, “Heartland and Novation share strong financial foundations and a long history of serving Minnesotans. By uniting, we will strengthen and expand the value we provide to members, communities, and our Select Employer Group partners, including 3M, CHS, Land O’Lakes, and Solventum.Together we can enhance service, improve digital innovation, and ensure long-term sustainability in a competitive industry. This partnership also expands community impact and creates more opportunities for employee growth. Our merger is a forward-thinking, values-driven step that builds a stronger future for the people and communities we proudly serve.”
It said its branch would remain open and members would also have access to two more branches.
Heartland CU had $376,721 in net income during 2025, with net worth of 9.88%. Novation CU ended the year with $2.8 million in net income and net worth of 10.72%.
A Boilerplate Message; A Payout for Management
Merging Credit Union: Great Lakes FCU, Bay City, Mich.
Assets: $59.7 million
Members: 4,479
Year Chartered: 1963
Date of Member Vote:
Acquiring Credit Union: Credit Union 1, Lombard, Ill.
Assets: $2.33 billion
Members: 150,837
The second of three CUs merging into Credit Union 1 in this latest CU Daily update, Great Lakes FCU uses the same language in its message to members as used by others being absorbed by the Chicago credit union, stating the merger is desirable because the continuing credit union “operates with the technology and systems that align with ourmembers’ needs. Their internal core values align with our own and give us confidence our membership will experience the same quality of service, but with new and expanded service options. We believe a synergy exists between the two credit unions and this partnership will benefit all involved.”
It also cited expanded branches and ATMs, improved tech, expanded products and services, expanded financial wellness, an enhanced back office, improved cybersecurity and more as reasons for the combination.
Merger-Related Comp
Several people with Great Lakes FCU will receive merger-related compensation, including:
- CEO Justin Ebel, who is to receive a retention incentive of $150,000, payable upon the closing of the merger. He will also be offered continued employment with Credit Union 1 with an annual base salary will be $175,000.
- Branch Manager Michele Sabourin, who is to receive a merger retention incentive of $15,000 payable uponthe close of the merger, along with a post-merger increase in annual base salary of $8,859.
- Senior Lender Christopher Hotchkiss shall receive a merger retention incentive of $15,000 payable upon theclose of the merger, and a post-merger base salary increase of $5,382.
- Mortgage Operations Brandy Rondeau, who is to receive a merger retention incentive of $15,000.
Great Lakes FCU had year-end net income of $367,173 and net worth of 11.98%. Credit Union 1 had $6.2 million in net income and net worth of 10.65% at year-end.
Member Says Lack of ‘Clear’ Explanation About Merger is ‘Troubling’
Merging Credit Union: Franklin First CU, Greenfield, Mass.
Assets: $86.4 million
Members: 7,339
Year Chartered: 1958
Date of Member Vote:
Acquiring Credit Union: Greylock FCU, Pittsfield, Mass.
Assets: $1.67 Billion
Members: 105,601
In its brief message to members, Franklin First CU said the merger was desirable because Greylock FCU will provide opportunities to increase products and services to members.
Member Asks How Merger is ‘Desirable’
A member identified as Matthew Hart said in a comment related to the merger proposal that “The materials provided to members lack the specificity necessary for an informed vote. The notice asserts that the merger is ‘desirable’ and ‘in the best interests of members’ and will result in ‘improved rates,’ ‘lower fees,’ and expanded products and services, yet no documentation supports those claims.
“General assurances are not a substitute for transparent, product-level disclosure. Members are being asked to approve the dissolution of their independent credit union without knowing precisely what their accounts, costs, and contractual terms will become,” the comment continued. “Most troubling is the absence of a clear explanation of why this merger is necessary. If Franklin First leadership believes that technology costs, regulatory burden, capital pressures, competitive risk, or other structural challenges threaten the credit union’s long-term viability, members deserve a candid and detailed disclosure of those risks. If such pressures justify surrendering independence, that case should be plainly made.
“Conversely, if Franklin First is financially sound and sustainable as a stand-alone institution, members are entitled to understand why merging is preferable. Without a clearly articulated statement of the financial and operational factors that led the Board to conclude this merger is in members’ best interests, the rationale appears conclusory rather than substantiated.
“Publicly available customer reviews also suggest stronger member satisfaction at Franklin First than at Greylock branches,” the comment stated. “Members reasonably worry that consolidation into a much larger institution may diminish service quality and local responsiveness. Stating that a branch will remain open does not address service standards, staffing continuity, or member experience.”
Request for More Info
The comment letter asks that members be provided with:
- A detailed account conversion and product mapping schedule, including applicable rates and terms
- A side-by-side comparison of all member-facing fees and account requirements
- Written clarification regarding treatment of existing fixed-rate and variable-rate loan contracts
- Disclosure of anticipated changes to branch operations or service structure beyond maintaining a physical location
- A clear explanation of the financial and operational factors underlying the Board’s determination that the merger is in members’ best interests.
The Financials
At year-end, Franklin First had $779,204 in net income, along with net worth of 8.58%. Greylock FCU had $17.8 million in net income and had net worth of 12.91%.
A Hospital CU Says a Combination is the Cure
Merging Credit Union: SMMH FCU, Pittsburgh
Assets: $3.1million
Members: 756
Year Chartered: 1966
Date of Member Vote:
Acquiring Credit Union: Greater Pittsburgh FCU, Pittsburgh
Assets: $71.4 million
Members: 10,580
SMMH FCU, which serve St. Margaret Hospital, said it needs to merge in order to attract new members, as the merger will provide “enhanced and expanded services and locations for members that the modest size of the credit union is unable to provide.”
SMMH FCU ended last year with $25,135 in net income, and net worth of 24.01% (it does not plan any distribution). Greater Pittsburgh FCU had $1.2 million in net income and net worth of 14.74% as of Dec. 31.
CEO to Become ‘Chief Faith Officer’ if Merger OK’d
Merging Credit Union: Inland FCU, La Mesa, Calif.
Assets: $14.5 million
Members: 1,243
Year Chartered: 1960
Date of Member Vote: April 21
Acquiring Credit Union: Cabrillo CU, San Diego
Assets: $570.5 million
Members: 28,932
Inland FCU said a merger will allow “for a consolidation of energies and resources of the two credit unions to betterserve the members in a competitive and secure environment that is an increasingly crowded marketplace for financial services,” and that Cabrillo FCU was selected because of its commitment to member service, low-cost banking services, its long-term stability, and because it will expand its existing branch and ATM geographic footprint, It will also “bring more modern, innovative banking solutions to our members,” it said.
It further said a combination will mean lower operating costs, additional products and services, a larger geographic footprint, the retention of employees, a continuation of federal deposit insurance and a CU that is “more responsive to evolving financial needs.”
“Beyond these immediate benefits, this merger will combine two established entities that share similar values and commitment to their members, people, and culture,” Inland FCU said. “These two organizations share a core purpose of advancing and promoting the interests of the public to empower people to achieve a brighter financial future. Withthe combined vision, people, and capabilities of these two organizations, the members, communities, and employees will receive lasting benefits.”
Merger-Related Compensation
The merger will lead to compensation for some Inland FCU leaders, including:
- President/CEO Jeffrey Lower, who will become chief faith officer and be eligible to receive severance in a maximum potential amount of $107,000 (gross) ($64,200 assuming a 40% tax rate) if the Cabrillo terminates his employment without “cause.” Lower will receive payout of unused accrued paid time off benefitstotaling $72,252.10 (gross) ($43,351.26 after taxes assuming a 40% tax rate), This is not an increase in pay and is already accrued by Inland Federal Credit Union.
- Operations Manager Lisa Kearney, who will be offered continued employment as Cabrillo as director of training on an “at-will” basis with a one-time annualized salary increase of $28,541 (gross) ($17,124.60 after taxesassuming a 40% tax rate). Kearney will be eligible to receive severance in a maximum potential amount of $39,229 (gross) ($23,537.40 after taxes assuming a 40% tax rate) if Cabrillo terminates her employmentwithout “cause” within 12 months of the merger date. Kearney will receive payout of unused accrued paid timeoff benefits totaling $39,250 (gross) ($23,550 after taxes assuming a 40% tax rate); however, this is not an increase in pay and is already accrued by Inland Federal Credit Union, the CU said.
- MSR Tammy Erickson, who will be offered continued employment on an “at-will” basis and will be eligible toreceive severance in a maximum potential amount of $28,600 (gross) ($17,160 after taxes assuming a 40% tax rate) if Cabrillo terminates her employment without “cause” within 12 months of the merger date. Erickson will receive payout of unused accrued paid time off benefits totaling $887.15 (gross) ($532.29 aftertaxes assuming a 40% tax rate); however, this is not an increase in pay and is already accrued by Inland Federal Credit Union.
- MSR Audie Uy, who will be offered continued employment on an “at-will” basis and will be eligible to receive severance in a maximum potential amount of $20,850 (gross) ($12,510 after taxes assuming a 40% tax rate) if the Continuing Credit Union terminates his employment without “cause” within 12 months of the merger date.
Inland FCU posted a loss of $4,973 during 2025, with net worth of 8.32%.
Lack of Online Banking One Big Reason for Merger
Merging Credit Union: Medical Employees of Staten Island FCU, Staten Island, N.Y.
Assets: $2.57 million
Members: 787
Year Chartered: 1958
Date of Member Vote: March 24
Acquiring Credit Union: Municipal Credit Union, New York
Assets: $4.89 billion
Members: 631,649
MESIFCU said there’s a simple reason it’s looking to merge: “…Because MCU, first and foremost, offers online banking, which most members are looking for. They also offer all types of loans, including mortgages.”
Merger-Related Comp:
Two people with Medical Employees of Staten Island FCU are being offered compensation tied to the merger, including:
- Manager/Treasurer Susan Ortolano: $54,639, for one year’s salary, plus $3,290.11 for leave payout
- Teller/Clerk Catherine Rose: $2,343, for one month’s salary, plus $1,440.93 for leave payout.
MESICU closed out 2025 with $13,921 in net income, with net worth of 9.13%. Municipal CU had net income of $54.1 million and net worth 11.8%.
27% Capital, But No Distribution
Merging Credit Union: Salina Interparochial CU, Salina, Kan.
Assets: $22.4 million
Members: 2,366
Year Chartered: 1961
Date of Member Vote: April 29
Acquiring Credit Union: Kansas State University FCU, Manhattan, Kan.
Assets: $139.9 million
Members: 9,688
Salina Interparochial CU’s board said the merger is a “perfect union” to “become stronger together to provide trusted financial services to our members and to impact our greater trade areas and communities.”
Other critical considerations it said members should consider include:
- Support members’ needs with cutting edge technology and services to meet financial industry standards to compete and prosper
- Increased financial resources to ensure long-term financial strength to serve members through diversified assets, risk reduction, and increased capital reserves
- Attract, value, and retain skilled, dedicated staff and offer a quality benefit package
- Maximize “economies of scale” to gain a “unified” professional team. increased operating efficiencies, better financial oversight, and improved member services
Salina Interparochial had $144,195 in net income in 2025, to go with net worth of 27.83% (it indicated there would be no net worth distribution). KSUFCU had $1.2 million in net income and net income of 10.71%.
A Patronage Dividend to be Paid
Merging Credit Union: Del Met FCU, Muncie, Ind.
Assets: $8.44 million
Members: 909
Year Chartered: 1969
Date of Member Vote: April 29
Acquiring Credit Union: PrimeTrust Financial FCU, Muncie, Ind.
Assets: $257.2 million
Members: 18,597
Members will benefit from tying up with another CU because “increasing operating costs, competition with hiring and retaining staff and not being able to offer the best products for our members.”
Noting its capital is higher than that of PrimeTrust Financial, Del Met FCU said it will pay a $50 patronage to each member account each month for six months if the merger is approved. In this latest review of merger proposals by the CU Daily, this is the only example of net worth being returned to members.
Merger-Related Comp
Two people will receive compensation as a result of the merger:
- Manager Sherry Wilber: $5,000 bonus
- Assistant Manager Jana Mace: $1,000 bonus
The Financials
Del Met FCU finished $31,805 in the red at year-end 2025, to go with net worth of 16.06%. Prime Trust Financial was $2.5 million in the black with net worth of 10.12% as of the same date.
Economies of Scale, Better Pricing are Cited
Merging Credit Union: Redbrand Credit Union, Bartonville, Ill.
Assets: $73.8 million
Members: 7,314
Year Chartered: 1952
Date of Member Vote: April 29
Acquiring Credit Union: R.I.A. FCU, Bettendorf, Iowa
Assets: $659 million
Members: 40.037
Redbrand CU’s board said the merger will mean “better pricing and services, additional products, enhanced convenience and account access and lower operating costs as a larger combined institution. The merged credit union will also achieve economies of scale which will permit it to better compete in the increasingly competitive financial services industry. By joining together, Redbrand Credit Union and R.I.A. Federal Credit Union will retain their members-first philosophy and be better positioned to serve members now and into the future.”
It said its two branches will remain open.
The Financials
Redbrand CU finished in the black in 2025, with $540,247 in net income to go with net worth of 12.42%. R.I.A. FCU had $2.1 million in net income and net worth of 8.23% as of the same date.
Disclosure Language Sounds Familiar; Payout for Management
Merging Credit Union: Indiana Lakes Credit Union, Warsaw, Ind.
Assets: $27.54 million
Members: 1,749
Year Chartered: 1977
Date of Member Vote: May 7
Acquiring Credit Union: Credit Union 1, Lombard, Ill.
Assets: $2.33 billion
Members: 150,837
Indiana Lakes CU is the third CU merging into Credit Union 1 in this latest CU Daily review of mergers. It uses the same disclosure language to members as the other two in explaining why it should merge, saying Credit Union 1 “operates with the technology and systems that align with our members’ needs. Their internal core values align withour own and give us confidence our membership will experience the same quality of service, but with new and expanded service options. We believe a synergy exists between the two credit unions and this partnership will benefit all involved.”
It also cited expanded branches and ATMs, improved tech, expanded products and services, expanded financial wellness, an enhanced back office, improved cybersecurity and more as reasons for the combination.
Merger-Related Comp
Several people with Indiana Lakes CU will receive merger-related compensation, including:
- President Jamie Bates, who will receive a merger retention incentive of $175,000, and be offered continued employment for five years with an annual base pay increase of $43,500.
The Financials
Indiana Lakes had $195,504 in net income during 2025, with net worth of 11.65%. Credit Union 1 had $6.2 million in net income and net worth of 10.65% at year-end.
Merger Will ‘Ultimately Enhance Member Value,’ Says CU
Merging Credit Union: Ascent FCU, Ogden, Utah
Assets: $172.3 million
Members: 9,210
Year Chartered: 1957
Date of Member Vote: May 14
Acquiring Credit Union: Goldenwest FCU, Washington Terrace, Utah
Assets: $3.95 billion
Members: 208,088
Ascent CU said the merger will bring operational cost savings and improve the financial strength Goldenwest,“ultimately enhancing member value.”
It said other benefits include:
- Increased convenience and improved service resulting from the additional 51 branch locations in multiple counties across the state of Utah and the southern part of the state of Idaho.
- New and enhanced products and services
- Reduction of fees (ODP, NSF, wires, origination, account)
- Expanded loan services through additional loan types including commercial/business loans, construction loansand student loans
- Access to Goldenwest Credit Union’s insurance services
- Elevated community relationship through operation as Weber State Credit Union, a division of GoldenwestCredit Union.
Ascent CU closed 2025 with $250,501 in net income, with net worth of 9.02%. Goldenwest Credit Union ended the year with $65.2 million in net income and net worth of 13.22%.
