INDIANAPOLIS—The CU Daily’s newest review of the merger proposals being put in front of members finds just one CU paying out some of its net worth as part of the deal, one CU merging in three others (with payouts to management at each), a CEO becoming a “chief faith officer,” and several members asking for more information on the benefits of a merger.
Below is part one of a two-part series in the CU Daily this week featuring the merger disclosures provided to members as per information filed with NCUA.
HFCU Merging into a Smaller CU; ‘The Reality Small CUs Face Today’
Merging Credit Union: Harvester Financial CU, Indianapolis
Assets: $81.89 million
Members: 8,319
Year Chartered: 1954
Date of Member Vote: March 9
Acquiring Credit Union: Energy Plus CU, Indianapolis
Assets: $43.9 million
Members: 3,881
Harvester Financial told members that for 70 years it has been a “trusted partner for hardworking families,” but it also “recognizes the reality that small credit unions face today,” including rising expectations for tech offerings and rising compliance costs. “…Achieving the scale needed to deliver long-term stability, expanded product offerings, better digital tools, and competitive pricing has become increasingly challenging for smaller institutions.”
HFCU said the merger is built on preserving its branches, keeping staff and expanding its offerings.
Harvester Financial CU had $314,085 in net income for 2025, with net worth of 9.68%. Energy Plus had $262,071 in net income and net worth of 16.03% as of the same date.
In New York, a Search for a New Beginnings
Merging Credit Union: Westar FCU, Camillus, N.Y.
Assets: $33.2 million
Members: 1,793
Year Chartered: 1963
Date of Member Vote: March 16
Acquiring Credit Union: Beginnings CU, Ithaca, N.Y.
Assets: $1.51 billion
Members: 75,152
The board of Westar CU said the merger was in members’ best interests due to shared values and a shared history of serving education FOMs, access to an additional 12 branches, new product and service offerings that include a dedicated call center, online banking platforms, debit and credit rewards, real estate financing, and more. It also cited economies of scale.
The merger proposal calls for one Westar board member to join the Beginnings CU board.
Westar said its CEO, Karen Grabowski, would receive $5,000 as part of a three-month transition agreement bonus, and will also receive health and dental benefits until August of 2028 for a value of $19,641.
Payments for All Staff
Any Westar CU employee who is employed with the continuing credit union for six months after the merger will receive a retention bonus equal to 3% of their then current annual base wage, and at the one-year point will receive a retention bonus of 7% of their then current annual base wage.
It further noted, “No member of Westar’s board of directors or supervisory committee is entitled to receive any payments or benefits pursuant to any merger-related financial arrangement.”
At year-end, Westar FCU had net income of $1.7 million, with net worth of 10.4%. Beginnings CU closed the year with $6.3 million in net income and net worth of 13.6%.
25 Years After Founding, an ‘Ideal Merger Partner’
Merging Credit Union: Catholic United Financial CU, St. Paul, Minn.
Assets: $34.34 million
Members: 2,955
Year Chartered: 2001
Date of Member Vote: March 18
Acquiring Credit Union: Notre Dame FCU, South Bend, Ind.
Assets: $1.28 billion
Members: 66,471
Calling Notre Dame FCU the “ideal merger partner” as the largest Catholic-oriented credit union in the nation, Catholic United Financial CU said the benefits of merging include:
- Personalized experiences and financial wellness
- Expanded products and services that include business and nonprofit services, enhanced savings and CD options
- Additional loan offerings
- Mortgages
- Expanded online and mobile banking tools.
“As financial cooperatives, credit unions must operate in a world of increasing regulatory complexity, rapid technological change, and growing competition from large banks and fintechs” CUFCU told members. “This partnership allows us to benefit from greater scale and efficiency, lowering the cost of doing business and reinvesting those savings back into better services, long term stability, and continued support for our members and Catholic communities.”
Catholic United posted $138,312 in net income for 2025, with net worth of 10.37%. Notre Dame FCU had $8.2 million in net income last year, with net worth of 9.35%.
An $800 Loss in 2025; a Merger in 2026
Merging Credit Union: BASF Chattanooga FCU, Chattanooga, Tenn.
Assets: $3.44 million
Members: 411
Year Chartered: 1959
Date of Member Vote: March 20
Acquiring Credit Union: EPB Employees CU, Chattanooga, Tenn.
Assets: $40 million
Members: 2,483
BASFCFCU told member the merger is beneficial because EPB Employees brings “more than 70 years of consistent, reliable service to its members, a strong financial foundation with $40 million in assets, and a staff known for their friendly, knowledgeable approach. Partnering with an institution of this strength positions us to provide greater stability, expanded services, and long-term value for the members we currently serve.”
BASF Chattanooga posted an $811 loss for 2025, with net worth of 19.52% (it said there would be no net worth distribution). EPB Employees had net income of $104,890 and net worth of 10.37% as of year end.
In St. Louis, One CU Seeks a New Gateway
Merging Credit Union: Gateway Metro FCU, St. Louis
Assets: $173.1 million
Members: 9,652
Year Chartered: 1935
Date of Member Vote: March 24
Acquiring Credit Union: West Community CU, O Fallon, Mo.
Assets: $491.2 million
Members: 32,296
Gateway Metro FCU’s board told members a merger will “enhance the member and workforce experience and address longerterm competitive concerns that it cannot accomplish independently. Over the past four years, Gateway Metro Federal Credit Union has experienced a decrease in membership and assets. This has led to a decrease in its net worth ratio and return onassets, which makes needed investments in technology and infrastructure not possible. Through a merger with WestCommunity Credit Union, the Board of Directors believes that it can immediately and significantly enhance value for the membership and the workforce.”
It further said the merger with WCCU would provide additional branches, “top of the line” core and digital banking systems, improved financial strength and more professional opportunities for the workforce.”
Merger-Related Comp
Gateway Metro FCU said its president and CEO, Jerome Lewis, will remain employed with West Community CreditUnion and assume the role of chief risk officer. He will be granted an employment contract guaranteeing his current salary atthe time of merger and will receive a deferred compensation benefit of $75,000 per year that will be vested and paid at theend of seven years from the date of the merger should Mr. Lewis remain employed with the credit union through that time period.
“Both his salary and deferred compensation benefit are comparable to others in similar positions at similar size credit unions,” the credit union said. “There are no other merger-related financial arrangements to disclose.”
The Financials
Gateway Metro posted a $315,650 loss for 2025, with net worth of 7.90%. West Community had $2.49 million in net income and net worth of 8.52% as of the same date.
Member Objects to How Voting Works; Payout for Execs
Merging Credit Union: MWRD Employees Credit Union, Chicago
Assets: $38.8 million
Members: 2,128
Year Chartered: 1953
Date of Member Vote: March 25
Acquiring Credit Union: Credit Union 1, Chicago
Assets: $2.33 billion
Members: 150,837
With one member filing a comment stating that every nonvote by members will be considered a “yes” vote for the merger, two Chicago CUs are looking to combine.
Credit Union 1 is the most aggressive credit union in the U.S. in terms of merging in smaller CUs, with three such acquisitions appearing in this latest CU Daily two-part series.
The first is MWRD Employees CU, which used the same boilerplate language used in other mergers into Credit Union 1 in stating the merger is desirable because the continuing credit union “operates with the technology and systems that alignwith our members’ needs. Their internal core values align with our own and give us confidence our membership will experience the same quality of service, but with new and expanded service options. We believe a synergy exists between the two credit unions and this partnership will benefit all involved.”
It also cited expanded branches and ATMs, improved tech, expanded products and services, expanded financial wellness, an enhanced back office, improved cybersecurity and more as reasons for the combination.
Member Comment
One person filed a comment on the merger.
“Members were NOT PROVIDED with a proxy vote form where a choice was given to vote NO to the proposed merger. Members CANNOT ABSTAIN from voting and every member’s vote WILL AUTOMATICALLY BE COUNTED AS A “YES” proxy vote REGARDLESS of whether or not the member has filed a MERGER PROXY as included in the Notice of Special Meeting, dated January 12, 2026,” wrote John Klimas. “The ONLY WAY TO PREVENT AN AUTOMATIC “YES” VOTE to the proposed merger IS TO VOTE IN PERSON at the special meeting. Many of the members have disabilities or are elderly; many others have moved out of state and so attending the meeting would be a hardship to them.
“To remedy this, I demand that each member be provided with a replacement MERGER PROXY form which allows a clear choice of a “YES” or “NO” vote for the proposed merger,” the comment continued. “Further, I demand that NO proxy vote shall be counted unless they have been received on such a completed, signed, dated MERGER PROXY with a CLEAR indication of a vote of “YES” or “NO” to the proposed merger.”
Merger-Related Comp
MWRD ECU said employees who voluntarily resign from the continuing credit union within the first 12 monthsafter the effective date of the merger shall be eligible for a severance payment less any retention bonus theymay have been paid. The severance payment will be equal to two weeks of the employee’s pre-merger salary times the number of completed years of service as determined on the effective date of the merger.
- President and CEO Linda Geers is to receive a merger retention incentive of $225,000, payable upon the closing of the merger, and will be offered continued employment with Credit Union 1 following themerger through her anticipated retirement date of December 31, 2027. Her pre-merger annualcompensation and benefits will increase by $35,087 post-merger.
- Branch Manager Joanne Shinnick shall receive a merger retention incentive of $25,000 payable upon theclose of the merger, and her compensation and benefits will increase by $4,784 post-merger.
- E-Services Manager Jewell Hobbs shall receive a merger retention incentive of $25,000 payable upon the close of the merger and will see an increase in annual compensation and benefits will increase by $8,252post-merger.
MWRD ECU finished 2025 with net income of $85,668 and net worth of 14.01% (there will be no distribution). Credit Union 1 had $6.2 million in net income and net worth of 10.65% at year-end.
‘New Level of Strength & Efficiency’ Cited
Merging Credit Union: Montgomery VA FCU, Montgomery, Ala.
Assets: $6.4 million
Members: 747
Year Chartered: 1946
Date of Member Vote: March 25
Acquiring Credit Union: Alabama State Employees CU, Montgomery, Ala.
Assets: $442.1 million
Members: 39,166
“The Board of Directors has concluded that the proposed merger is desirable and in the best interests of members because we can continue to provide our valued members with the best financial products and services going forward,” Montgomery VA FCU told members. “Merging will allow a new level of strength and efficiency to our members that will include expanded services, enhanced technology, higher dividend rates on deposits, competitive interest rates on loans, many convenient locations, and most importantly, continued stability.”
Montgomery VA FCU posted a $15,945 loss during 2025, with net worth at 11.56%. Alabama State CU had $4.62 million in net income and net worth of 12.15%.
SWCFCU Says It’s Seen ‘Gradual Decline in Membership’
Merging Credit Union: SouthWest Communities FCU, Carnegie, Penn.
Assets: $18.9 million
Members: 1,865
Year Chartered: 1939
Date of Member Vote: March 26
Acquiring Credit Union: West-Aircomm FCU, Beaver, Penn.
Assets: $366.2 million
Members: 21,822
SouthWest Communities said it needs a merger partner because “the gradual decline in membership makes it difficult to continue to offer the wide range of services we provide. In addition, the new credit union will be able to offer more services.”
The credit union said its office will remain open indefinitely, and members will also have access to four other offices.
Merger-Related Comp
SWCCU said CEO Barbara Heil will receive $310,000 in merger-related severance pay.
SouthWest Communities closed 2025 with $89,955 in net income and net worth of 10.07%. West-Aircomm had $6.36 million in net income and net worth of 12.17% as of the same date.
Manager Exits, Plus Other Issues; So, One CU Looks to Go HOME
Merging Credit Union: CAPE FCU, Clarksburg, W.V.
Assets: $16.1 million
Members: 1.184
Year Chartered: 1993
Date of Member Vote: March 26
Acquiring Credit Union: HOME Credit Union, Clarksburg, W.V.
Assets: $36.1 million
Members: 3,045
CAPE FCU told members it needs to merge for the following reasons:
- The current loss of the manager/CEO.
- It is increasingly difficult to keep up with the rapid regulatory change and technological changes in thefinancial sector. Home FCU’s focus on security and technology will enhance the financial experience ofCAPE FCU members.
- It is increasingly difficult to offer competitive salaries and benefits to the employees that service your accounts. Home FCU has the resources to ensure the employees that service your accounts will receive a competitive salary and benefits.
- A merger would achieve operational cost savings under a larger credit union, ultimately enhancing member value.
- “United, we will be able to build on our strength and innovation and better meet the evolving needs ofour members and potential members in all locations. Home FCU is a credit union deeply committed toenriching the lives of its members and uplifting the communities in which they serve.”
- Same Knowledgeable, Friendly Employees. The same friendly staff at our branch will continue to beavailable to serve members after the merger.
CAPE FCU finished out 2025 $602 in the black, with net worth of 7.81%. HOME FCU had $259,180 in net income and net worth of 14.87% as of the same date.
