HOUSTON–The last in the latest series in the CU Daily examining CU mergers finds a new billion-dollar CU, a million-dollar payout for one CEO, the “prison” of being a small credit union, a smaller credit union that is more profitable than the larger CU acquiring it, and a one-sentence summation of why it must merge.

This is the ninth in a series in The CU Daily that reviews nearly 100 of the most recent merger proposals that have been put in front of credit union members. The series has been divided into articles covering approximately 10 mergers/proposals each, to give time to readers to see what is driving mergers, what members are being told, who’s getting what, and more.

• Part I in this series can be found here.
• Part II in this series can be found here.
• Part III in this series can be found here.
• Part IV in this series can be found here
• Part V can be found here.
• Part VI can be found here.
• Part VII can be found here.
• Part VIII can be found here.

About This Series

All of the reporting has been drawn from the merger-related disclosures required of all federally insured CUs.

Editor’s Note: The financial data cited for each of the credit unions below is drawn from the time period during which the proposed mergers were announced and disclosure forms were provided to members. For that reason, some of the financial data cite performance through the Q2 and Q3 5300 forms, while others cite data through year-end.

Here’s a look at what the CU Daily has found.

‘Show Me’ a Merger That Will Create Billion-Dollar-Plus CU

Merging Credit Union: Missouri Credit Union, Missoula, Mo.

Assets: $565.7 million

Members: 36,848

Year Chartered: 1969

Date of Member Vote: March 27

Acquiring Credit Union: River Region Community FCU, Jefferson City, Mo.

Assets: $715.9 million

Members: 42,587

Although it has more than a half-billion dollars in assets, Missouri Credit Union said a merger would allow it to offer better products, services, pricing, account access, and have lower operating costs.

Missouri CU had $5.5 million in net income and net worth of 10.29% as of year-end 2024.  River Region had $5.6 million in net income and net worth of 9.95% as of the same date.

(Editor’s Note: As the CU Daily reported, MCU members recently voted in favor of the merger.)

High Net Worth to be Distributed to Members, Management

Merging Credit Union: Appletree Credit Union, West Allis, Wis.

Assets: $127.2 million

Members: 5,625

Year Chartered: 1935

Date of Member Vote: April 7

Acquiring Credit Union: Advia Credit Union, Kalamazoo, Mich.

Assets: $3.44 billion

Members: 193,197

In a long note to members, Appletree CU said much has changed since it was founded in 1935, sharing that the future looks “much different.”

“Intelligent automation, immersive digitization, artificial intelligence, blockchain integration and tokenization, embedded financial services and open banking are only a few of what will soon become member expectations, especially for the emerging generation of members,”  said Appletree, adding regulatory mandates are also a growing burden, along with growing fraud risk and cybersecurity.

It noted its current core provider is also sunsetting its platform in 2025.

“…Our credit union must either shift our delivery of core financial products and services or partner with others to meet generational shifts. This notice is to let you know that the board believes the partnership is the best solution for members and has selected Advia Credit Union as this partner. In our search as part of the board’s duty of diligence, 12 credit unions were researched; six were asked to submit a proposal. In the end, three credit unions submitted competitive proposals.”

Payout to Members

Saying it believes in the “equalization of reserves,” Appletree reported it will return a portion of its much higher net worth ratio (27.47% vs. 10.74% at Advia at the time of the announcement) and will distribute more than $20 million back to members, with a minimum payment to members of $250 and a maximum of $25,000, depending on account balance.

Separately, Appletree also provided a bullet-point list of benefits from a merger, including increased cybersecurity, expanded branches and ATMs, more financial tools, expanded community outreach, and competitive rates as the result of improved economies of scale.

Compensation for Management

Several members of Appletree’s management team will receive merger-related compensation, including:

• President and CEO Lisa Greco will receive approximately $1,123,334, which it said reflects a previously contracted change-in-control agreement of $564,562; an award based on years of service of $92,500 (a similar offer is being made to all ATCU employees); a guarantee of health insurance to age 65 valued at approximately $30,000; and dividend and loan rebates afforded to all members. Greco is to become a business continuity and risk officer with no increase in wage after at the merged institution. Advia may provide a bonus after the data processing integration of not more than $50,000, and will provide a severance agreement valued at $369,000 if Greco resigns or is terminated. 
• EVP Alison Watson will receive $280,873, which includes a previously contracted change-in-control agreement of $215,166; an award based on years of service of $52,500, and dividends and loan rebates, as afforded the general membership, of $13,207 of which part of this sum is paid to accounts not as a member, but as a joint holder. Advia will maintain the employment of Watson with no increase in wage and may provide a bonus three months after merger or data processing integration that will be determined by Advia and be as much as $35,000.
• Chief Accounting Manager Linda Luedtke will receive $356,860, which includes a previously contracted change-in-control agreement of $221,215; an award based on years of service of $85,000, and loan rebates of $50,645, of which part of this sum is paid to accounts not as a member, but as a joint holder. Advia will maintain the employment of Luedtke  with no increase in wage and may provide a bonus three months after merger or data processing integration that will be determined by Advia and be as much as $20,000.
• Chief Lending Manager Wendell Gladem will receive $296,901, which includes a previously contracted change-in-control agreement of $197,837; an award based on years of service of $87,500, and dividends and loan rebates of $11,564 of which part of this sum is paid to accounts not as a member, but as a joint holder. Advia will maintain Gladem’s employment with no increase in wage and may provide a bonus three months after merger or data processing integration that will be determined by Advia and be as much as $20,000.
• Chief Operations Manager Karen Behnke will receive $268,881, which includes a previously contracted change-in-control agreement of $180,064; an award based on years of service of $80,000, and dividends and loan rebates of $8,817 of which part of this sum is paid to accounts not as a member, but as a joint holder. Advia will maintain the employment of Behnke with no increase in wage and may provide a bonus three months after merger or data processing integration that will be determined by Advia and be as much as $20,000.

Appletree CU had $1.091 million in net income during 2024. Advia Credit Union had $21.5 million in net income and net worth of 9.64%. 

Can’t Break Out of Prison of Being Small, Says 1 CU

Merging Credit Union: C S P Employees FCU, Enfield, Conn.

Assets:$10.3 million

Members: 1,238

Year Chartered: 1949

Date of Member Vote: April 15, 2025

Acquiring Credit Union: America’s First Network CU, East Hartford, Conn.

Assets: $87.8 million

Members: 8,313

C S P Employees FCU, which serves the Connecticut state prison system, said it has become “increasingly difficult for our small credit union to meet the financial demands of state-of-the-art technology and regulatory compliance. We have had to limit the scope of services provided to our members to maintain an adequate capital position…”

The board told members it chose America’s First Network CU as a merger partner because of its divisional/network structure,” which will allow it to retain its brand.  It will also maintain its staff and location, and add numerous products and services, pay higher rates on savings, improve turnaround on loans (“no more waiting a week for loan committee decisions,” it said), and offer more branches. 

Merger-Related Comp

Two people could potentially receive merger-related compensation, according to C S P Employees FCU. Member Service Reps Kelly Vene and Louise Holden will receive “compensatory salary not to exceed $45,000 should either or both of their employment(s) with America’s First Network Credit Union be terminated without cause with one year of the merger date.”

C S P EFCU had $41,774 in net income at year-end 2024, and capital of 11.84%. America’s First Network posted $267,818 in net income and had net worth of 11.15% as of the same date.

Money-Losing Miss. CU Looks to Combine

Merging Credit Union: McComb FCU, McComb, Miss.

Assets: $5.7 million

Members: 1,327

Year Chartered: 1940

Date of Member Vote: April 15, 2025

Acquiring Credit Union: Magnolia FCU, Jackson, Miss.

Assets: $158.7 million

Members: 20,088

McComb FCU urged members to vote in favor of the merger because of the “alignment of values” between it and Magnolia FCU, especially in providing services to low-income and underserved individuals. Moreover, it said the merger would provide expanded products and services, advanced technology, a dedicated call center, and a stronger financial foundation. 

McComb FCU had a loss of $42,525 at year-end 2024, and capital of 16.05%.  Magnolia FCU had $3.31 million in net income and healthy capital of 21.76% as of the same date. 

A One-Sentence Reason for Merging

Merging Credit Union: Lewiston Porter FCU, Youngstown, N.Y.

Assets: $14.1 million

Members: 854

Year Chartered: 1956

Date of Member Vote: April 21, 2025

Acquiring Credit Union: Ontario Shores FCU, Newfane, N.Y.

Assets: $159.2 million

Members: 10.481

In a one-sentence explanation of why it needs to merge, Lewiston Porter FCU told members, “…The proposed merger is desirable and in the best interests of members because our credit union CEO will be retiring in 2025 and our assets will be decreasing in the coming years due to the ageing of our membership.” 

LPFCU said its lone office will remain open after the merger.

Lewiston Porter FCU had $46,989 in net income during 2024, and capital of 11.61%. Ontario Shores reported $1.75 million in net income and had net worth of 11.13% as of year-end.

Ongoing Negative Net Earnings are Cited

Merging Credit Union: Dale Community FCU, Columbus, Neb.

Assets: $27 million

Members: 2,405

Year Chartered: 1952

Date of Member Vote: April 24, 2025

Acquiring Credit Union: OneNebraska FCU, Columbus, Neb.

Assets: $79.2 million

Members: 6,983

The board of Dale Community FCU told members its small asset size and the complexity and cost of new technology, new products and services and “other operational factors” have made it difficult to compete. It noted that in recent years it has had negative earnings and net worth, and it has lost the ability to grow. 

DCFCU said OneNebraska will offer a “more robust” offering of products and services, as well as more branches. It added that all of its employees will be retained and will be offered more benefits through the larger CU.

One person will receive merger-related compensation: Lending Manager Carla Davalos is to receive a retention bonus of $11,128.

Dale Community reported a loss of $501,424 during 2024, with net worth at 14.23%. OneNebraska had $308,542 in net income and net worth of 10.12% as of Dec. 31, 2024.

Smaller, But More Profitable Than Acquiring CU, Looks to Merge 

Merging Credit Union: Wellesley Municipal Employees FCU, Wellesley, Mass.

Assets: $28.3 million

Members: 1,580

Year Chartered: 1955

Date of Member Vote: April 29

Acquiring Credit Union: Common Trust FCU, Woburn, Mass.

Assets: $55.7 million

Members: 3,397

Wellesley Municipal EFCU said a merger would provide members with expanded products and services, better technology, new delivery channels and two more office locations. 

WMEFCU had $200,229 in net income in 2024, with net worth of 10.34%. CommonTrust actually reported lower net income at $150,276, with net worth of 10.40% as of year-end.

In the Texas Panhandle, a “Shared Culture” is Cited

Merging Credit Union: Pamcel Community FCU, Pampa, Texas

Assets: $12.3 million

Members:  999

Year Chartered: 1953

Date of Member Vote: April 29

Acquiring Credit Union: Santa Fe FCU, Amarillo, Texas

Assets: $198.8 million

Members: 13,046

Pamcel Community FCU cited an “enhanced array of financial products and services,” improved capital, and a “shared culture” within the Texas Panhandle as reasons to vote in favor of the combination. 

In an 11-point list, it also said the merger would offer secure online platforms, an infrastructure built for an expanding FOM, remote deposit capture and other “competitive” offerings. 

In terms of a share adjustment or distribution, Pamcel Community FCU told members Santa Fe FCU will “issue all members of Pamcel Community the same amount of SFFCU shares as they own in Pamcel Community as of this effective time.”

Pamcel Community lost $23,685 during 2024, with net worth of 16.79% (it said there would be no net worth distribution).  Santa Fe FCU posted $463,603 in net income, with capital at 12.39%