BUFFALO, N.Y.–A higher-than-usual number of proposed payouts to management teams—even at CUs operating in the red–plus where one CU sees “HOPE,” CUs becoming “divisions” of others and more can be found in this, the second in a three-part series that is part of the CU Daily’s one-of-a-kind, ongoing analysis of credit union mergers.
Part I in this series can be found here.
Here’s the newest update.
‘Great Rates & Friendly Customer Service’
Merging Credit Union: Dunlop Employees FCU, Buffalo, N.Y.
Assets: $14.6 million
Members: 1,441
Year Chartered: 1951
Date of Member Vote: Oct. 28
Acquiring Credit Union: SJP FCU, Buffalo, N.Y.
Assets: $185.6 million
Members: 7,450
In a fill in the blanks disclosure to members, Dunlop Employees FCU said the merger “will bring you the great rates, friendly customer service you’re used to and finally (sic) be able to offer online services!”
The Financials
Dunlop Employees FCU had net income of $70,825 as of June 30, with net worth of 13.47%. SJP FCU posted $2 million in net income and had net worth of 11.56% as of midyear.
Operating Efficiencies Cited in Deal to Cross State Lines & Create $7 Billion CU; Payouts to 5 Execs
Merging Credit Union: LGE Community Credit Union, Atlanta
Assets: $2.4 billion
Members: 128,026
Year Chartered: 1951
Date of Member Vote: Nov. 9
Acquiring Credit Union: Ascend FCU, Tullahoma, Tenn.
Assets: $4.84 billion
Members: 271,555
LGE Community Credit Union told members that greater scale, operating efficiencies and the resources needed to invest in technology and services are among the primary reasons they should approve its proposed merger with Ascend Federal Credit Union, while also disclosing that members will receive no distribution of LGE’s accumulated net worth and several senior executives could receive substantial merger-related payments and benefits.
The two credit unions are approximately 190 miles apart.
LGE, which stresses that it remains a “strong, healthy organization,” said its board unanimously supports the transaction and believes combining with Ascend will produce operational cost savings and greater long-term value for members. The merger has received regulatory approval to move forward to a member vote.
If approved, the combination would create a credit union serving nearly 392,000 members with about $7.14 billion in assets and 45 branches across Georgia and Tennessee, according to the member disclosure. LGE said its existing branches would remain open.
The credit unions are targeting Jan. 1, 2027, as the effective date, subject to required regulatory and LGE member approvals.
The Financials
LGE Community CU reported $5.89 million in net income as of mid-year, with net worth of 11.99%. Ascend FCU posted $29.1 million in net income and had net worth of 14.55%.
LGE Says Greater Scale Will Reduce Costs
LGE’s board and management said the central financial rationale for the merger is the opportunity to achieve operating cost savings as part of a larger institution and use those savings and additional resources to increase member value.
Among the benefits LGE cited are:
- Access to more branches and ATMs, with the combined institution operating 45 branches and members having access to large surcharge-free ATM networks.
- A broader range of savings, account and business products.
- More resources to develop new financial products, digital services and other technology.
- Greater financial stability and resources.
- Additional community outreach, financial education and local investment.
- Continued emphasis on competitive deposit and loan rates.
- Retention of LGE’s existing branch employees.
- Continued LGE representation in governance, with four of 11 board seats initially held by current LGE directors and two of five supervisory committee positions held by current LGE directors.
The Financials
LGE Community had $6.89 million in net income in the first half of the year, with net worth of 11.99%. Ascend FCU had $29.1 million in net income and net worth of 14.55%.
Members Will Not Receive Distribution of LGE Capital
LGE said its board determined there would be no payout of net worth to members because LGE does not have a higher net worth ratio than Ascend and the merger will not increase the continuing credit union’s net worth.
In reaching its decision not to distribute capital to members, LGE said the board considered one-time merger expenses, including early contract termination fees, prepaid expenses and depreciation.
Executives to Receive Merger-Related Compensation, Benefits
While members will not receive a distribution of LGE’s net worth, the disclosure identifies merger-related financial arrangements for several LGE senior executives, including:
- LGE President and CEO Chris Leggett will become president and chief integration officer of the combined credit union, while Ascend President and CEO Matt Jernigan will serve as CEO.
Leggett will receive a two-year employment agreement maintaining his current salary. LGE said he will not receive a retention bonus, but the agreement provides potentially significant severance benefits.
If terminated without cause, Leggett would be eligible for $380,278 plus his salary for the remaining months of the two-year agreement. If he terminates the agreement for “good reason” because of certain material changes in salary, duties or job location, he would be eligible for $1,521,114, two years of insurance benefits and his monthly salary for the remainder of the agreement. If his employment ends when the agreement expires, he would be eligible for $1,521,114 and two years of insurance benefits.
Leggett would also qualify for post-retirement medical insurance beginning at age 67 under several circumstances, including termination without cause, resignation for good reason involving specified changes to his employment, or voluntary termination after providing 180 days’ notice.
Others Receiving Comp
Other disclosed arrangements include:
- Sean Ferrell, senior vice president/chief financial officer: A $250,000 retention bonus if he remains employed through the first anniversary of the merger, plus a $458,193 payment representing the present value of a 457(f) plan for which the merger triggers payment. Ferrell could also receive severance equal to 200% of his then-base salary and two years of insurance coverage under specified termination or resignation circumstances between the merger and its second anniversary.
- Murali Krishnan, senior vice president/chief information officer: A $375,000 retention bonus, with half payable if he remains employed on the merger date and half if he remains through the first anniversary. He will also receive $414,676, representing the present value of his 457(f) plan because the merger triggers payment. Under specified circumstances, he could receive severance equal to 150% of his then-base salary and one year of insurance coverage.
- Carol Wagner, senior vice president/chief experience officer: No retention payment is identified, but Wagner could receive severance equal to 150% of her then-base salary and one year of insurance coverage if terminated without cause on or before the first anniversary of the merger or if she voluntarily resigns on the first anniversary.
- Anthony Bake, senior vice president/chief risk officer and general counsel: A $214,800 retention bonus, half payable if he remains employed on the merger date and the remainder if he remains through the first anniversary. Bake could also receive severance equal to 100% of his then-base salary and one year of insurance coverage under specified termination or resignation circumstances through the second anniversary.
The disclosed fixed retention and 457(f) payments for Ferrell, Krishnan and Bake total $1,712,669, separate from any salary, insurance or potential severance payments. Leggett’s potential severance benefits and Wagner’s and the other executives’ salary-based severance amounts are not included in that total.
A Disputed Merger Would Create West Coast Giant; Nearly $15M in Payouts to Execs
Merging Credit Union: SAFE Credit Union, Folsom, Calif.
Assets: $4.41 billion
Members: 245,942
Year Chartered: 1940
Date of Member Vote: Oct. 27
Acquiring Credit Union: BECU, Tukwila, Wash.
Assets: $29.6 billion
Members: 1.59 million
The CU Daily has had extensive coverage around the merits of the proposed merger between Sacramento-based SAFE Credit Union and Seattle-based BECU.
If the combination is completed, it will create a mega-credit union on the country’s west coast of approximately $35 billion in assets. The two credit unions first announced plans to merge in November 2025. A member information page can be found here.
Most recently, the proposed combination has been the subject of dueling opinion pieces in local media by former credit union CEOs, while one member has also been outspoken in his opposition to the proposed combination, as reported here.
Rose and SAFE CU President and CEO Faye Nabhani have met to discuss the merger on two separate occasions.
As the CU Daily reported here, Nabhani had earlier told the Sacramento Bee the proposed merger is not an “efficiency play” and instead The intention is to grow in California. The intention is to make this an even stronger area and region.”
‘Meaningful New Benefits Cited’
In a letter to members from CEO Faye Nabhani and SAFE CU Chair Martha Lofgren, members are urged to vote in favor of the combination as it will offer “meaningful new benefits for our members, create additional opportunities for employees, and strengthen the support we provide in the communities we proudly serve. This combination allows us to expand our impact while continuing the personal service, local commitment, and trusted relationships that matter so much to our members.”
The letter says the SAFE board investigated other options, including remaining independent and “exploring other partnerships, always with our members in mind,” before deciding the merger with BECU was its best option.
In urging members to vote, SAFE said, “There is another meaningful way your vote can make a difference. In keeping with SAFE’s long-standing commitment to supporting local nonprofits and community organizations, we are donating $250,000 among four community partners. In addition to voting on the SAFE and BECU combination, you will have the opportunity to choose one of four organizations supporting education, financial wellness, affordable housing, or workforce development. Amounts will be awarded based on thetotal percentage of votes each community partner receives.”
Additional reasons SAFE says the merger will benefit members can be found here.
The Financials
At midyear, SAFE CU reported $21.39 million in net income to go with net worth of 10.82%. BECU had $86.1 million in net income and net worth of 12.57% as of June 20.
Nearly $15M in Payouts to Execs
As the CU Daily was the first to report, according to SAFE CU’s disclosure to members, executive who are to receive merger-related financial benefits the following. For each of the individuals SAFE said SERP and change-in-control agreements were established prior to, and independent of, the proposed merger, and because BECU does not offeran equivalent program, existing agreements will be terminated and values will be paid out as a retention agreement tied to continued employment through the post-merger transition period.
President and CEO Faye Nabhani
- For the SERP portion of the agreement, Nabhani will be eligible for threeseparate post-close payments up to $1,075 million each, totaling up to$3.225 million.
- For the retention portion of the agreement, Ms. Nabhani will be eligible for three separate post-close payments up to $361,000 each, totaling up to$1,083 million
- A one-time $50,000 bonus, as described above.
- Upon closing of the proposed merger, Nabhani has agreed to be employed by the continuing credit Union in the position of Market President for the Greater Sacramento Region. Upon employment by BECU after closing, Nabhani’s total future annual compensation, including base salary, incentive opportunities, and employer retirement contributions, is
expected to decrease by approximately $504,710.
EVP/COO Tiffani Vargas
- For the SERP portion of the agreement, Vargas will be eligible for threeseparate post-close payments up to $925,073 each, totaling up to $2,775,219.
- For the retention portion of the agreement, Vargas will be eligible for three separate post-close payments up to $240,000 each, totaling up to $720,000.
- A one-time $50,000 bonus.
EVP/CFO Alexis Fitzpatrick
- For the SERP portion of the agreement, Fitzpatrick will be eligible for threeseparate post-close payments up to $698,520 each, totaling up to$2,095,560.
- For the retention portion of the agreement, Fitzpatrick will be eligible for three separate post-close payments up to $207,603 each, totaling up to$622,809.
- A one-time $50,000 bonus, as described above.
EVP/CTO Michael McCarthy
- For the SERP portion of the agreement, McCarthy will be eligible for threeseparate post-close payments up to $471,232 each, totaling up to $1,413,696.
- For the retention portion of the agreement, McCarthy will be eligible for three separate post-close payments up to $208,000 each, totaling up to $624,000.
- A one-time $50,000 bonus.
EVP/Chief HR Officer Colleen Nerius
- For the SERP portion of the agreement, Nerius will be eligible for threeseparate post-close payments up to $396,797 each, totaling up to $1,190,391.
- For the retention portion of the agreement, Nerius will be eligible for threeseparate post-close payments up to $185,631 each, totaling up to $556,893.
- A one-time $50,000 bonus, as described above.
The payout to the five executives totals more than $14.5 million.
Appeal to State Regulator on Member Vote
Under California law, a merger requires an affirmative vote by a majority of SAFE Credit Union’s 246,000 members. But there is a way around that requirement, which SAFE CU says it intends to pursue. Under California Financial Code Section 15201(b), a credit union’s board may apply to the California Commissioner of Financial Institutions “for approval of a merger inaccordance with a plan of merger approved by a majority of the board ofdirectors of each credit union that is a party to the merger, even thoughless than a majority of the outstanding members of a disappearing creditunion has voted to approve the merger.”
SAFE CU said it intends to pursue that path.
A Small CU Operating in the Red Sees New ‘HOPE’
Merging Credit Union: NRS Community Development FCU, Birmingham, Ala.
Assets: $1.1-million
Members: 920
Year Chartered: 1996
Date of Member Vote: Nov. 8
Acquiring Credit Union: HOPE FCU, Jackson, Miss.
Assets: $881 million
Members: 49,735
NRS Community Development FCU told members a merger will allow it to “expand access to financial products and services, strengthen operational capacity, and ensure long-term stability. Partnering with Hope FCU–a mission aligned.”
The credit union said its one branch would remain open for a “period of time” after the merger.
The Financials
NRS Community Development posted a loss of $6,415 as of June 30, with net worth of 7.10%. Hope FCU had $120,202 in net income and net worth of 16.18%.
Expanded Services Cited as CU is to Become a ‘Division’ Post-Merger
Merging Credit Union: P&S Credit Union, Salt Lake City, Utah
Assets: $24.8 million
Members: 2,104
Year Chartered: 1980
Date of Member Vote: Nov. 16
Acquiring Credit Union: Firefighters Credit Union, Draper, Utah
Assets: $69.6 million
Members: 3.470
P&S CU told members a merger is in their best interests because it will provide access to an expanded range of products and services, additional branches and operational scale. It said its lone office will continue as a branch of Firefighters CUs and that it will operate as “P&S Credit Union, a division of Firefighters Credit Union.”
Merger-Related Comp
P&S said President and CEO Tammy Morgan will retire on the effective date of the merger and will be paid $23,500 in recognition of her service. The CU said the payout was discussed by the board prior to the merger discussion.
The Financials
P&S CU had $108,190 in net income at midyear, with net worth of 12.09%. Firefighters CU had net income of $31,309 and net worth of 10.46% as of June 30.
Teachers CU Cites Retirements of Key Execs; To Pay Out Some Capital
Merging Credit Union: New Haven Teachers FCU, New Haven, Conn.
Assets: $10.2 million
Members: 1,037
Year Chartered: 1971
Date of Member Vote: Nov. 17
Acquiring Credit Union: Nutmeg State Financial CU, Rocky Hill, Conn.
Assets: $916 million
Members: 66,686
The board of New Haven Teachers said the merger was the best long-term solution to “increasing operational and strategic challenges” and would provide expanded services, and is also a response too “impending retirements among key staff and volunteers.”
New Haven Teachers said it plans to distribute a special dividend equal to 2% of member deposits as a means of “returning a portion of the credit union’s accumulated capital to the members who helped build it.”
NHTFCU said its main office will close effective with the merger.
Merger-Related Comp
Three people are to receive merger-related compensation, including:
- President and CEO Tom McCarthy, who is to receive lump-sum severance based on years with the organization of $25,000
- MSR Joyce Flynn, who is to received severance of $10,000
- MSR Donna Solimeno, who is to receive severance of $10,000
The Financials
New Haven Teachers FCU had $42,616 in net income and net worth of 32% (it indicated there would be no distribution). Nutmeg State Financial had $2.45 million in net income and net worth of 11.93%.
Combo Would Create $10B CU; Payouts for Five Execs
Merging Credit Union: WeStreet Credit Union, Tulsa, Okla.
Assets: $966 million
Members: 61,218
Year Chartered: 2009
Date of Member Vote: Nov. 20
Acquiring Credit Union: CommunityAmerica Credit Union, Lenexa, Kan.
Assets: $9 billion
Members: 594,689
After concluding, “Our members will be better served together,” WeStreet Credit Union told its members the merger will benefit from:
- Enhanced products and services
- Sharing profits with members through CommunityAmerica’s Profit Payout program
- More locations and convenience
- Enhanced community impact through philanthropy
- Greater financial strength
- All branches will remain open and staff will be retained
Management Payouts
Five people will receive merger-related payouts, WeStreet CU said, including:
- Chief Administrative Officer Leslie Runyan, who is to receive a bonus of between $0 and $201,389 to be paid June 1, 2027, upon successful system/operational integration
- Chief Lending Officer Melanie Byers, who is to be paid between $0 and $206,515 to be paid June 1, 2027, upon successful system/operational integration
- Chief Retail Officer Heather Lowery, who is to receive a bonus of between $0 and $189,332 to be paid June 1, 2027, upon successful system/operational integration
- Chief Financial Officer Lauren Fleenor, who is to receive a bonus of between $0 and $218,972 to be paid June 1, 2027, upon successful system/operational integration
- Chief Digital Officer Bobby Panchisin, who is to receive a bonus of between $0 and $181,280 to be paid June 1, 2027, upon successful system/operational integration
Member Comment
One member filed a comment: “I am concerned at the underlying reasoning for the merger occurring. less than 3 years ago, the credit union rebranded from the original name to the new WeStreet moniker and now it plans to undergo a merger into another non related credit union? I question the reasoning for why the merger needs to happen. the mailed proposal states that the reasons are “financial conditions, operational capacity and future opportunities” however further information should be provided to reassure members that this isn’t just mismanagement by the board of directors.”
The Financials
WeStreet Credit Union, chartered as Tulsa FCU, had $823,921 in net income and net worth of 9.55% as of June 30. CommunityAmerica had net income of $90.5 million and net worth of 9.94% as of the same date.
‘Significantly’ Better Rates Cited as Reason to Merge; 4 People to Get Payouts
Merging Credit Union: Ontario Public Employees FCU, Ontario, Calif.
Assets: $23.1 million
Members: 1,779
Year Chartered: 1959
Date of Member Vote: Nov. 24
Acquiring Credit Union: F&A FCU, Monterey Park, Calif.
Assets: $3.15 billion
Members: 44,839
OPEFCU told members they will gain “significantly higher rates on their savings, lower costs on their borrowings, fewer and lower account fees, a wide range of mortgage loans, and a substantially broader range of financial products and services” as a result of the combination.
Merger-Related Compensation
Four people will receive compensation as a result of the merger, including:
- CEO John Meeks: Salary increase of $58,643
- Loan Processor Iren Miro: Salary increase of $15,600
- MSR Noreen Rivera: Salary increase of $13,728
- MSR Barbara Bideaux: Salary increase of $12,792
The Financials
Ontario Public Employees had net income of $168,861in net income and net worth of 15.48% as of June 30. F&A CU had net income of $16 million as of the same date, with net worth of 12.59%.
‘Not an Easy Decision’: Board Cites Concern Over 100-Year History as FCCCU Becomes Latest to Merge into Credit Union 1
Merging Credit Union: First Class Community Credit Union, West Des Moines, Iowa
Assets: $95.7 million
Members: 6,819
Year Chartered: 1925
Date of Member Vote: Nov. 30
Acquiring Credit Union: Credit Union 1, Lombard, Ill.
Assets: $2.86-billion
Members: 172,066
First Class Community CU said it delayed its board meeting so board members could spend additional time analyzing the merger.
“One message we heard consistently from members was the importance of preserve the identity, history and heritage of First Class Community Credit Union,” members were told. “the board shares that commitment and took additional time to thoughtfully evaluate how those values could be preserved as part of the proposed partnership with CU1…This was not an easy decision.”
FCCCU CU1 “has demonstrated a strong commitment to recognizing our heritage through legacy displays, murals, signage and other reminders of our history and postal employees roots.”
It said CU1 has committed to establishing a $30,000 annual scholarship program for five years for employees and their families.
Aggressive Acquirer of Other CUs
As the CU Daily has reported, Credit Union 1 is among the most aggressive credit unions in the country in merging in smaller CUs, and as it has with other CUs it has merged in, it has pledged that current members of the FCCCU board can serve on an “advisory committee.”
Like other CUs merging into CU1, First Class Community told members they would benefit from a merger due to expanded branch and ATM network, improved technology (“continued investment in the latest technology to greater increase (sic) access and convenience”), expanded products and services :to meet members; diverse financial needs and preferences”), enhanced financial wellness options, “enhanced operational back office,” “consistency through knowledgeable and friendly employees,” improved cybersecurity, national recognition through established partnerships, and :more resources to provide enhanced member service.”
Merger-Related Compensation
Two people with FCCCU will receive merger-related compensation:
- President and CEO Zac Pollock, who is to receive a retention incentive of $150,000 and will be offered continued employment as Iowa market president, with an annual salary increase of $15,000
- COO Chelsea Burlington, who is to receive a merger retention incentive of $25,000 and see a post-merger salary increase of $21,621.
The Financials
First Class Community CU had $584,479 in net income during the first six months of the year, to go with net worth of 10.79%. Credit Union 1 had net income of $22.3 million and net worth of 10.91% as of June 30.
