PITTSBURGH, Penn.–Identical disclosure language, payouts to executives and board members, and just one payout to members as the result of a merger can be found in this second part of the CU Daily’s latest, industry-leading coverage of mergers in credit unions.
Part one in this series can be found here.
Language That Sounds Awfully Familiar
Merging Credit Union: Alcoa Pittsburgh FCU, Pittsburgh
Assets: $34 million
Members: 2,116
Year Founded: 1938
Member Vote: July 9
Acquiring Credit Union: CHROME FCU, Washington, Penn.
Assets: $199.9 million
Members: 13,572
Alcoa Pittsburgh FCU listed the usual reasons for needing to merge, including better pricing and services, additional products, enhanced convenience and lower operating costs.
“The merged credit union will also achieve economies of scale which will permit it to better compete in the increasingly competitive financial services industry,” the credit union said.
With the exception of the names of the credit unions themselves, Alcoa Pittsburgh FCU used language that is word-for-word identical to that used in the disclosure form provided members of Emery FCU, as reported in the first part of this series in the CU Daily, stating, “By joining together Alcoa Pittsburgh Federal Credit Union and CHROME Federal Credit Union will retain their members-first philosophy and better positioned to serve members now and into the future.”
One person did file a comment with NCUA, stating, “I strongly support the merger between these two banks.”
Alcoa Pittsburgh FCU had a $120,453 loss as of March 31, with net worth of 14.44% (it had $126,618 in net income for 2024). CHROME FCU posted net income of $223,041 as of March 31, with net worth of 14.49%.
An Explanation for Three Constituencies
Merging Credit Union: KaiPerm Northwest FCU, Portland, Ore.
Assets: $137.5 million
Members: 5,742
Year Founded: 1971
Member Vote:
Acquiring Credit Union: Consolidated FCU, Portland, Ore.
Assets: $685.6 million
Members: 35,394
In a disclosure statement that listed benefits of a merger to members of both credit unions, Kaiperm Northwest FCU members were told the combination would provide them with:
- The best opportunity to maintain their local, healthy credit union
- Increased convenience and improved service resulting from five additional branches
- New and enhanced products and services
- Expanded loan services
- Increased conscience from expanded online services and electronic delivery stems and continued investment in technology
Members of Consolidated CU will benefit from the merger, according to the statement, through:
- Increased returns to member (sic) from additional capital and savings and efficiencies of the merged credit unions
- Two additional branch locations
Members of both CUs will benefit, the statement continued, from:
- Increased capital and financial strength ensuring long term sustainability
- Enhanced member value through expanded financial product and service offerings, distribution channels, and competitive rates and fees
- Additional cost savings in operations, resulting from consolidated back office support functions, and greater market presence and bargaining power
- Shared cultures and values
- Additional branches
After providing details around the net worth of each institution and noting the combined net worth would be 15.23%, KaiPerm NW FCU said there would be no net worth distribution because the “shares in each credit union are reasonably equal in value and no share adjustments are warranted.”
Kaiperm NW FCU had net income of $162,808 as of Q1, with net worth of 11.02%. Consolidated FCU had $1.55 million in net income and net worth of 15.44% as of the same date.
The NCUA data base, by the way, shows there were at one point 21 credit unions operating with the word “Consolidated” in their names. Today, there are eight because, well, they consolidated.
Declining Membership, Financial Results are Cited
Merging Credit Union: Entertainment Industries FCU, Elizabeth, N.J.
Assets: $14.4 million
Members: 2,229
Year Founded: 1975
Member Vote: July 15
Acquiring Credit Union: Affinity FCU, Basking Ridge, N.J.
Assets: $4.23 billion
Members: 232,691
Entertainment Industries FCU listed two reasons for merging:
- “Both are membership and financial results have been declining for the past few years and there is little opportunity for growth in order to restore long term viability.”
- Affinity Federal Credit Union offers a wider range of products and services at competitive prices, can provide service through local ranches and digitally on their cell phone app, online and via their call center.
EIFCU said it will not distribute capital because it must repay subordinated debt as well as support received from a CDFI grant that will not be continuing.
It said its current CEO and employees will become employees of Affinity FCU, but there will be no increases in compensation.
Entertainment Industries FCU posted $127,011 in net income for Q1, with net worth of 13.29%. Affinity FCU had $1.63 million in net income and net worth of 8.22%.
Operating Under Supervision, CCU Says It Has No Choice
Merging Credit Union: COPOCO Credit Union, Bay City, Mich.
Assets: $103.8 million
Members: 7,500
Year Founded: 1965
Member Vote: July 21
Acquiring Credit Union: ELGA Credit Union, Grand Blanc, Mich.
Assets: $1.6 billion
Members: 99,857
COPOCO CU’s board told members it needs to merge because the “high costs of technology and increased government regulation has rendered COPOCO Credit Union in a less-competitive market position, such that that the credit union has struggled to maintain adequate capital reserves.
“Accordingly, the credit union has come under increased supervision by the Michigan Department of Insurance and Financial Services. It has been determined that merging with a larger, more financially stable credit union like the surviving credit union, which services a similar member base and who shares a common member philosophy with COPOCO Community Credit Union, will offer credit union members a wider range of products and services that will better serve their needs…”
COPOCO CCU had $18,819 in net income for the first quarter (it had more than $783,979 in net income in 2024) and net worth of 8.42%. ELGA FCU had $5.9 million in net income for Q1, with net worth of a whopping 25.59%.
With Sub-6% Net Worth, NFFCU Says Merger a Capital Idea
Merging Credit Union: Newark Firemen FCU, Newark, N.J.
Assets: $8.7 million
Members: 1,665
Year Founded: 1940
Member Vote: July 22
Acquiring Credit Union: Liberty Savings, FCU, Jersey City, N.J.
Assets: $122.8 million
Members: 16,702
In a fill-in-the-blanks disclosure statement to members, Newark Firemen FCU told members “…the additional products and services offered by the continuing CU with expanded branch office and electronic service access” is in their access.
“In addition, since the Newark Firemen FCU’s net worth and capital position as (sic) below 6%, a special dividend to the members of Newark Firemen FCU’s members (sic) can’t be done from the remaining capital.”
Newark Firemen posted a loss of $45,966 as of Q1, with net worth of 5.74%. Liberty Savings FCU had $260,170 in net income and 12.67% as of March 31.
A Rare Net Worth Distribution
Merging Credit Union: SecurTrust FCU, Southaven, Miss.
Assets: $47.2 million
Members: 3,416
Year Founded: 1949
Member Vote:
Acquiring Credit Union: CenturyFirst FCU, Hattiesburg, Miss.
Assets: $93.3 million
Members: 12,743
SecurTrust FCU told its members it would “need to grow its membership, gain economies of scale and differentiate itself to be able to compete with larger financial service companies in an increasingly crowded marketplace for financial services. The board of directors of SecurTrust Federal Credit Union understands the threat of cyber hackers that occur daily and feels that a merger with a larger credit union will provide the much needed security for members’ financial data as well as personal data. A larger credit union will have more resources to afford the data protection that members expect.”
SecurTrust also said members would have access to shared branching locations, expanding lending options, including mortgages, and more.
It also said its manager, Martha Rushing, will remain with CenturyFirst FCU after the merger and that members of its board would joining those of the acquiring credit union.
All other employees will also retain their jobs, it said.
Net Worth Distribution
SecurTrust FCU said it will pay out approximately $3.4 million as a special dividend to members in the form of 10% APY on share balances as of June 30.
SecurTrust FCU had net income of $149,387 as of March 31, with net worth of 17.26%. CenturyFirst had $270,224 in net income and net worth of 14.98% as of the same date.
Combo Crosses State Lines, Includes Payments to Execs, Board Members
Merging Credit Union: Meritrust FCU, Wichita, Kan.
Assets: $2.1 billion
Members: 120,553
Year Founded: 1935
Member Vote: July 28
Acquiring Credit Union: Premier Members CU, Boulder, Colo.
Assets: $1.79 billion
Members: 78,788
After citing “respective strengths and resources,” Meritrust provided members with a nine bullet-point list of reasons the merger is in their best interests, including:
- Products and services that economies of scale will make possible
- Being “more responsive to evolving financial needs”
- Enhanced electronic banking
- More branches (the CUs, combined, will have 33 branches, but are more than 500 miles apart)
- Ongoing commitment to community impact at a local level
- Volunteer representation (the plan is for a 14 member board with seven members from each CU)
- Same knowledgeable, friendly employees
- Leadership representation (James Nastars, CEO of MCU, and Carlos Pacheco, CEO of PMCU, will “co-lead” the organization
Compensation Increases
According to the statement to members, five members of the management team at Meritrust will see pay increases related to the merger. Those include:
- President and CEO James Nastars, who will receive a salary increase of $83,713, and a payout as part of a change-in-control provision in his incentive plan of $123,251.64
- Chief Digital Officer Wade Bruendl, who will see a salary increase of $13,045, a retention bonus of $73,750 to be paid in increments in 2026 and 2027, and a payout as part of a change-in-control provision in his incentive plan of $83,093.84.
- CFO Jess Howard, who will see a salary increase of $54,700, a retention bonus of $81,250 to be paid in increments in 2026 and 2027, and a payout as part of a change-in-control provision in his incentive plan of $53,396
- Chief Growth Officer Jamie Harrison, who will receive a salary increase of $23,123, a retention bonus of $78,750 to be paid in increments in 2026 and 2027, and a payout as part of a change-in-control provision in his incentive plan of $194,058.58.
- Chief Retail Officer Joley Riley, who will receive a salary increase of $73,560, a retention bonus of $93,750 to be paid in increments in 2026 and 2027, and a payout as part of a change-in-control provision in his incentive plan of $84,332.23.
Compensation to Board Members
According to Meritrust, the retained board members will be eligible for and receive compensation under Premier Members CU’s existing board compensation policy. The chair will receive $40,000 annually and other board members will be paid $30,000 annually. The MCU board members who will continue with the merged board are Steve Dunn (as chair), Brian Middleton, Gwendolen Horsch, Misty High, Joel Duty, Brian Cox and Hector Cortez.
There will be no net worth distribution to members, with Meritrust citing one-time merger costs, and the continuing credit union’s “extensive infrastructure and beneficial services and product offerings,” as well as its own net worth position, as the reasons.
As of March 31, Meritrust CU had $890,889 in net income for Q1, with net worth of 8.43%. Premier Members CU had $361,628 in net income and net worth of 8.86% as of the same date.
Net Worth of 28%, But No Distribution
Merging Credit Union: S.T.O.F.F.E. FCU,. Solon, Ohio
Assets: $4.4 million
Members: 1,523
Year Founded: 1965
Member Vote: July 29
Acquiring Credit Union: Century FCU, Independence, Ohio
Assets: $442.7 million
Members: 29,041
Although it is operating in the red in Q1, in one of the more professional presentations made to members as part of a merger bid, S.T.O.F.F.E. FCU included numerous graphics, a balance sheet, and a listing of the additional branches to be gained and distance from the current location.
But in an unusual description of the “reasons for merger,” initially, S.T.O.F.F.E. FCU told member the proposed merger is “desirable and in the best interests of members because net worth of a merging credit union at the time of a merger transfers to the continuing credit union. S.T.O.F.F.E. Federal Credit Union does have a higher net worth ratio than Century Federal Credit Union. S.T.O.F.F.E. Federal Credit Union will not distribute a portion of its net worth to its members…because…it is unnecessary because Century Federal will enhance the merging credit union by offering expanded products, operational efficiencies, regulatory expertise and a strong organizational culture to ensure sustainable growth and excellent member service.”
The credit union has net worth of 28.11%.
In the next paragraph, the credit union then lists other reasons for the merger including a “wide array of financial solutions,” online access and mobile banking, and additional branches.
S.T.O.F.F.E. FCU posted a $31,894 loss as of Q1. It had positive net income of $35,646 at year-end 2024. Century FCU had net income of $494,506 as of March 31, with net worth of 10.76%.
Four Employees to Receive Payout
Merging Credit Union: Lake Shore FCU, Angola, N.Y.
Assets: $21.9 million
Members: 3,210
Year Founded: 1967
Member Vote: August 4
Acquiring Credit Union: Radius FCU, Kenmore, N.Y.
Assets: $66.4 million
Members: 4,984
In a very brief reason of the reasons to merge, Lake Shore FCU said, “Radius FCU has more services to offer Lake Shore FCU members. One branch in Kenmore, another branch coming in 2026 in Hamburg and shared branching and branches worldwide.
While there will be no net worth distribution, four people at Lake Shore FCU will receive merger-related compensation, according to its disclosures:
- CEO Susan George: $17,784.26, reflecting a salary increase and health insurance
- Operations Manager Calie Koch: 26,939.90, reflecting a salary increase and health insurance
- MSR Julie Cole: $8,253, reflecting health insurance
- Loan Officer Amy Hines: $12,297.60, reflecting health insurance.
Lake Shore Credit Union had $196,177 in net income as of Q1, and net worth of 14.26% (it did not indicate any plans for a distribution). LSCU reported $241,081 in net income as of year-end 2024. Radius FCU posted $141,551 in net income for Q1, with net worth of 13.67%.
The NCUA database, incidentally, shows there were at one point three credit unions with “Lake Shore” in their names. Should members vote in favor of this merger, there will be no more.
