SALT LAKE CITY–A higher-than-usual number of member comments and questions, more payouts to senior execs even at CUs losing money, and just one CU distributing some of its capital as part of a merger can all be found in this CU Daily overview of the latest merger proposals from credit unions.
The following is based on the disclosure forms that must be filed with NCUA when seeking to combine, plus NCUA 5300 information.
Here’s what the CU Daily found:
CU Operating in Red, Says CEO Retiring, Can’t Find Board Members; Management Gets Payouts
CEO retirement, operating in red, can’t find board and supervisory committee members
Merging Credit Union: HEMA FCU, Silver Spring, Md.
Assets: $16.65 million
Members: 1,771
Year Founded: 1969
Date of Member Vote: July 10
Acquiring Credit Union: PAHA/WHO FCU, Arlington, Va.
Assets: $325.8 million
Members: 6,977
As the CU Daily reported here, members of Healthcare Employees Mid-Atlantic (HEMA) Federal Credit Union have voted have approved a merger with PAHO/WHO Federal Credit Union, effective Sept. 1. As the CU Daily reported here, on that same day the combined credit union will begin a new chapter as Bienestar Federal Credit Union.
Financial Performance
Its June 30 5300 shows HEMA FCU posted a loss of $34,408, with net worth of 9.78%. PAHO/WHO’s Q1 call report indicates net income of $346,760, with net worth of 14.26%.
Reasons Cited for Merger
“Like HEMA Federal Credit Union, PAHO/WHO Federal Credit Union is committed to helping members live healthier financial lives, serving those working with and retired from MedStar and other health-related fields and organizations,” HEMA FCU told members.
Members were provided a list of 16 products and services it said the merger would make available, including those HEMA FCU already offers.
In addition, it said members would receive “improved convenience and account access via online and mobile technologies, and lower operating costs as a larger combined financial institution. Additionally, the pending retirement of the current CEO and lack of ability to identify new board and supervisory Committee Members has created an urgent need to identify the best way to continue serving members in the future. The combination with PAHO/WHO Federal Credit Union is deemed ideal as the Continuing Credit Union is in a much stronger financial position and has a strong succession plan for both volunteer leadership and management of the Credit Union.”
Financial Benefits
HEMA FCU said merger-related compensation would be paid out, including:
- CEO and Board Treasurer Thomas Mather is to receive a one-time payment of $250,000 in recognition of his 45 years of service to the Credit Union. Mather will retire following the completion of the merger
- Marbely Martinez, Operations Manager, will receive a one-time payment of $25,000 in recognition of service, Martinez will be offered employment at the continuing credit inion who “will compensate her according to the pay practices of the Credit Union, which include a wide range of benefits not currently offered by HEMA.”
In Utah, No Disclosure Documents Provided
Merging Credit Union: G&R Federal Credit Union, Salt Lake City
Assets: $6 million
Members: 1,423
Year Founded: 1962
Date of Member Vote: July 9
Acquiring Credit Union: American United FCU, West Jordan, Utah
Assets: $394.2 million
Members: 21,084
G&R FCU’s filing with NCUA did not include any documents related to the merger.
In Michigan, Two CUs See an Advantage in Combining
Merging Credit Union: Advantage One CU, Brownstown, Mich.
Assets: $268.1 million
Members: 18,516
Year Founded: 1952
Date of Member Vote: July 15
Acquiring Credit Union: LOC Credit Union, Farmington, Mich.
Assets: $327.3 million
In its message to members, Advantage One stated, “Reasons for merger: Advantage One Credit Union is financially strong and continues to serve its members well; this proposed merger is not driven by financial distress or the need to survive. Rather, it reflects a strategic decision to position the Credit Union for long-term success in an increasingly complex, technology-driven, and highly regulated and competitive operating environment. The rising costs of technology, regulatory compliance, and the recruitment and retention of skilled employees increasingly favor larger organizations with the scale to invest effectively. By combining with a like-minded organization that shares similar values and strategic priorities, the credit union will be better positioned to enhance member value, expand capabilities, and sustain competitiveness over time.”
Advantage One further explained that while LOC is the larger of the two CUs, the surviving name would be that of Advantage One. In addition, it noted that its president/CEO, Christopher Corkery, will also lead the combined organization.
Advantage One told members they will also be offered a “wider range” of products and services as a result of the merger.
Financial Performance
Advantage One posted $1.55 million in net income at midyear to go with 11.78% net worth. LOC Credit Union had $469,321 in net income and net worth of 8% as of the same date.
In Iowa, a Membership Vote is Put on Hold
Merging Credit Union: First Class Community Credit Union, West Des Moines, Iowa
Assets: $95.7 million
Members: 6,819
Year Founded: 1925
Date of Member Vote: Postponed
Acquiring Credit Union: Credit Union 1, Lombard, Ill.
Assets: $2.86 billion
Members: 172,066
Member comment withdrawn due to membership vote put on hold.
With Mid-Year Loss, GAFLEFCU Sees a Garden Elsewhere
Merging Credit Union: GAF Linden Employees FCU, Parsippany, N.J.
Assets: $3.89 million
Members: 459
Year Founded: 1937
Date of Member Vote: Aug. 11
Acquiring Credit Union: Garden Savings FCU, Parsippany, N.J.
Assets: $495.5 million
Members: 30,058
The board of GAF Linden Employees told members the merger will create an institution of nearly $500 million in assets and position is for “future growth.”
“Perhaps importantly, we believe this newly merged better credit union is better for all members involved. For GAF members, products and services including the Accelerate Savings Accounts, Platinum Rate Rewards, checking accounts and access to Zelle will be immediate enhancements to their products and services,” the credit union said. “the Garden Savings loan menu is vast…”
GAF Linden Employees said its main office will remain open two-to-three days per week.
Financial Performance
GAF Linden Employees posted a loss of $76,588 as of mid-year, with net worth of 18.08%. It indicated there would be no distribution to members. Garden Savings FCU had $644.403 in net income through June 30, with net worth of 8.4%%.
Merger-Related Compensation
GLECU said Manager Denise Faver would receive a separation package of $42,609.58.
In Louisiana, a First-Half Loss, 30% Capital, but No Distribution
Merging Credit Union: G.C.A. Federal Credit Union, Lake Charles, La.
Assets: $4 million
Members: 768
Year Founded: 1971
Date of Member Vote: Aug. 11
Acquiring Credit Union: Access of Louisiana Federal Credit Union, Lake Charles, La.
Assets: $44.5 million
Members: 3,600
“The Board of Directors has concluded that the proposed merger is desirable and in the best interests of members because the credit union is unable to provide additional financial services to their members due to their size and inability to expand membership,” GCA Federal told members.
G.C.A. FCU posted a $20,207 loss over the first half of 2026, with net worth of 30.06%. It did not indicate any plans to distribute any of the net worth. Access of Louisiana FCU had $34,271 in net income as of June 30, with net worth of 9.79%.
A Large CU Struggling with Net Worth Looks to Combine; Payout for 5 Members of Management
Merging Credit Union: True Sky FCU, Oklahoma City, Okla
Assets: $778.3 million
Members: 63,806
Year Founded: 1946
Date of Member Vote: Aug. 12
Acquiring Credit Union: Randolph-Brooks FCU, Live Oak, Texas
Assets: $19.5 billion
Members: 1.15 million
In its statement to members, True Sky said a merger was in their best interests because:
- True Sky Representation. Four members of the True Sky board of directors will be on the board of the continuing credit union (two of whom will have full voting rights and two of whom will have advisory positions) and the remaining directors of the True Sky board of directors will be invited to serve on a Regional Advisory Board.
- True Sky Charitable Causes and Community Impact. For at least two years after the merger, the continuing credit union will make a cash contribution to the True Sky Foundation that is at least equal to the dollar amount True Sky contributed for the year ended 2025. Additionally, the True Sky Foundation will continue in existence after the merger.
- Increased employee compensation and career development. As part of a larger organization, all continuing True Sky employees (except the President/CEO) will receive a 15% increase in base pay, be eligible for retention bonuses and have more pathways for career growth.
- Enhanced technology and infrastructure. RBFCU is a member of the CO-OP surcharge-free ATM network, and after the Merger is complete, True Sky members will continue to have access to more than 30,000 surcharge-free ATMs worldwide and shared branch locations. All True Sky members will gain access to industry-leading products and services, supported by RBFCU’s online banking platform, the RBFCU Mobile app and a suite of security features that streamline banking across products and devices.
- Economies of scale and cost efficiencies.
- A broad list of new product offerings.
Members Comment
Two members filed comment with NCUA.
- “I see that RBCU is committed to continuing contributions for two years to the True Sky Foundation to support charitable activity in the OKC vicinity. Heretofore, RBCU’s charitable activities have centered in Texas. What are your plans to continue supporting the communities of your Oklahoma members beyond the two years?”
- “Since I have moved to another state away from OK, I have enjoyed the Co-op program, of which True Sky is part. I am glad to see that Randolph-Brooks is also part of that if this merger goes through, so I don’t think I’ll have to worry about that.
However, I am still wary of this merger. If Randolph-Brooks is to be the “continuing credit union,” I’m assuming that the routing number will change to theirs and account numbers will be re-numbered. That means a LOT of hassle for the True Sky members. I’m assuming we will have to change all the routing numbers and account numbers on all of our financial information that goes through the internet, including changing the direct deposit information for my OK teacher retirement (which won’t be easy since I live out of state now), plus the many automatic withdrawals I have for various bills and companies I do business with online. That will take a LOT of time and effort to make all those changes to a new routing number and account number!!! I don’t need more hassle in my life.
Finally, I’m not keen on taking money and financial business from an Oklahoma financial institution and handing it all over to a Texas financial institution. All the financial benefits that went to an OK financial institution will go to an out-of-state Texas financial institution. Doesn’t Oklahoma have enough financial drought?”
Financial Performance
True Sky posted $880,368 in net income as of June 30, with net worth of 6.35%.
Merger-Related Compensation
True Sky said all employees would be eligible for retention bonuses to be paid at 90 days, one year and two years. Five people who are to earn retention bonuses at those anniversaries are, respectively:
- CEO Sean Cahill: $277,200; $118,800; $39,600
- Chief of Staff Julie Gamblin: $105,656; $45,281; $15,094; plus, an increase in base pay of $39,375
- CIO Thomas Michaud: $88,850; $37,950; $12,650; plus, an increase in base pay of $33,000
- VP-Lending Jennifer Murphy: $74,463; $31,913; $10,638; plus, an increase in base pay of $27,750
- VP-Innovation & Special Projects Andrea Tomlin: $64,400; $27,600; $9,200; plus, an increase in base pay of $24,000
