RANTOUL, Ill.–Credit Union 1 is proposing to merge in three more credit unions, with a mixture of offers around management compensation and member payouts.
In documents filed with NCUA, the $1.87 billion Credit Union 1 said it is seeking to add:
- The $19.5-million 77th Street Depot FCU in Chicago, which has 4,417 members. The credit union reported Q1 income of $32,270 and net worth of 24.61%.
- The $20.3-million Archer Heights Credit Union in Chicago, which has 2,219 members. AHCU posted a loss of $7,097 as of March 31, after closing 2024 with a loss of $20,429. It has net worth of 10.12%.
- The $346-million Great River FCU in St. Cloud, Minn., which has 20,852 members. Great River posted a $2.032 million loss at year-end 2024, with capital of 6.96%.
Credit Union 1, which has approximately 122,000 members, reported $4 million in net income and net worth of 10.4% as of year-end.
Identical Disclosures
In the disclosure statements to members required by NCUA, all three credit unions used identical language in urging members to vote in favor. That language reads in part:
“Credit Union 1 operates with the technology and systems that align with our members’ needs. Their internal core values aligned with our own and give us confidence our membership will experience a much needed upgrade in the quality of service we are unable to provide in this economic environment. We believe a synergy exists between the two credit unions and this partnership will benefit all involved.”
Benefits Cited
All three CUs also cited identical benefits of merging in their statements to members, including:
- Expanded branch and ATM network
- Improved technology
- Expanded products and services “tailored to meet members’ diverse financial needs and preferences”
- Enhanced financial wellness options
- Enhanced operational back office
- Consistency through knowledgeable and friendly employees (it said all would be retained and have access to improved training)
- Improved cybersecurity
- National recognition through “established partnerships and being associated with numerous marketing initiatives through Credit Union 1 that members will get to take advantage of
Merger-Related Compensation
Great River CU
Great River CU President and CEO Brant Hicks is to receive a $250,000 one-time retention bonus and will be employed for five years post-merger.
The credit union will not distribute any capital.
Great River CU members are to vote June 30.
Archer Heights Credit Union
Archer Heights will pay a special dividend of $25 if the merger is approved.
- President CEO Lisa Strnad will be paid a retention bonus of $75,000, receive an annual salary increase of $28,187, and be employed for a minimum of five years.
- VP-Finance David Kash will receive a retention bonus of $15,000, an annual salary increase of $13,772, and will be employed for a minimum of three years.
- VP-Lending Maribel Lopez will be paid a retention bonus of $10,000, receive an annual salary increase of $21,728, and be employed for a minimum of three years.
The credit union said any AHCU employee who voluntarily resigns from Credit Union 1 during the first 12 months after the merger will be eligible for severance
Archer Heights CU members are to vote July 1.
77th Street Depot CU
All employees will be offered employment, but there will be no merger-related financial arrangements.
Although it has nearly 25% capital, the member disclosure form did not indicate any distribution is planned.
77th Street Depot members are to vote July 15.
Prior Mergers
As the CU Daily has reported previously, Credit Union 1 has also recently merged in Synergy Partners Credit Union in Chicago, Illinois Community Credit Union in Sycamore, Ill, and Live Life Credit Union in Fraser, Mich.
