METARIE, La.–Part II of the CU Daily’s latest review of credit union merger proposals finds a rare development—members raising written objections, including to payouts going to management–along with other payouts, a CEO retirement driving a merger, a CU with net worth of more than 50% and much more.
Part one of this week’s series on mergers can be found here.
Members Object to Payout for Management That ‘Drove the Ship Into the Rocks’
Merging CU: Jefferson Financial FCU, Metairie, Louis.
Assets: $684.6 million
Members: 42,515
Date Founded: 1966
Date of Member Vote: May 21
Acquiring CU: Keesler FCU, Biloxi, Miss.
Assets: $4.3-billion
Members: 334,770
After noting it was originally chartered in 1966 and located on the second floor of a floral shop, JFFCU’s board told members a merger “makes sense for practical reasons,” but several members have filed written objections to the proposal.
In its message to members, Jefferson Financial said the plan is in response to industry consolidation, market pressures, increased cost of funds, high technology and compliance costs, and rising consumer expectations, and—even though it has nearly $700-million in assets—further says that “smaller credit unions are at risk.”
“A combination also allows Keesler to accelerate its move into the Greater New Orleans area,” it stated, before adding that “Jefferson’s lending philosophy, branch model, member service approach, balance sheet, and back-office functions (including core systems) are in tight alignment with Keesler,” whose size and scale will allow for “expanded member service.”
Merger-Related Compensation
Several people will receive merger-related compensation, according to the credit union’s disclosures, including:
- President and CEO Mark Rosa. A one-time retention bonus totaling $105,258 payable in two installments if he remains with the Continuing Credit Union for 12 months following the merger date, the credit union said.
- CFO Casey Kucera. A one time retention bonus totaling $40,257 payable in two installments, if she remains with the Continuing Credit Union for 12 months following the merger date.
- COO Kristin Morrison. A one time retention bonus totaling $35,094 payable in twoinstallments if she remains with the Continuing Credit Union for 12 months following themerger date.
- VP-Commercial Lending Robert Bell. A one time retention bonus totaling$32,850 payable in 2 installments, if he remains with the Continuing Credit Union for 12 months following the merger date.
- VP-Operations Madaline Barrios. A one time retention bonus totaling $25,270 payable in two installments, if she remains with the Continuing Credit Union for 12months following the merger date.
Member Comments
In an uncommon move, several members used the NCUA merger site to protest the combination.
“I have serious concerns about the proposed merger between Jefferson Financial (JF) and Keesler FCU. I was surprised to learn that JF has a net operating loss exceeding 10 million. This inspired me to dig into the call reports of JF, which revealed the fact their delinquent (60+ days late) loan balance is disproportionate relative to other FCUs,” one comment stated. “Keesler, serving a similar geographical area and demographic, has six times the assets of JF with only 2.5 times the delinquent loan balances. Another FCU that I am a member of, OnPoint, has nearly 14 times the assets of JF and only 3.6 times the delinquent loan balance.
“Over 45% of JF’s delinquent loan balance is accounted for by a single commercial real estate loan.”
‘Drove the Ship Into The Rocks’
“I am having a hard time looking at these numbers and concluding that the current leadership of JF deserves the ‘Merger-Related Financial Arrangements’ (aka: golden parachutes) they have reserved for themselves if the merger is successful,” the commentary continued. “From my perspective, they drove the ship onto the rocks, and now they want to collect bonuses for doing so. It is particularly infuriating to see the Vice President of Commercial Lending, whose division accounts for nearly half of JF’s loan delinquencies, receiving a large incentive to remain with the credit union post-merger.
Where is the Member Benefit?
“It may be that a merger with Keesler is the best outcome for JF’s members. Nonetheless, I do not believe the NCUA should condone any of these ‘Merger-Related Financial Arrangements’,” read another comment. “I would encourage a deeper audit of JF’s financials and the circumstances leading to JF’s operating loss before this merger before it is approved.
“This is supposed to be for the members benefit. I don’t see this benefiting the members. I personally feel this should be voted on separately from the merger by the members. Or if not voted on it should be significantly reduced (to) maybe .25 of the proposed amounts.”
Financial Performance
Jefferson Financial posted a loss of $1.19 million as of March 31, and reported a $10.1 million loss at year-end 2024. As of March 31 it had a 10.13% net worth ratio. Keesler FCU had net income of $15.4 million as of Q1, with net worth of 13.48%
Seeking to Deliver What Members ‘Covet’
Merging CU: Blue Chip FCU, Harrisburg, Penn.
Assets: $45.2-million
Members: 3,979
Date Founded: 1989
Date of Member Vote: May 28
Acquiring CU: Pennsylvania Central FCU, Harrisburg, Penn.
Assets: $85.7 million
Members: 8,310
In a succinct explanation to members, Blue Chip FCU said it needs to merge because “we have a desire for growth and also the need to add additional products and services that our members covet. In addition to PA Central FCU’s community charter and branches.”
Blue Chip FCU said its single office will remain open post-merger.
BCFCU had $66,281 in net income in the first quarter, to go with net worth of 12.43%. Pennsylvania Central reported $119,632 in net income and net worth of 9% as of March 31.
‘A Critical Point of Failure’
Merging CU: Postal CU, Baton Rouge, La.
Assets: $20.1 million
Members: 1,979
Date Founded: 1931
Date of Member Vote:
Acquiring CU: Pelican State CU, Baton Rouge, La.
Assets: $769.1 million
Members: 80,199
In its statement to members, Postal Credit Union said struggled to keep up with the cost and complexity of regulations and software to properly serve a shrinking membership.
“The credit union manager was unexpectedly out of the office on extended leave without sufficient succession planning or supervision in place to operate,” its statement reads. “While the existing Postal Credit Union employees have worked diligently to serve the membership, the mounting stress, fatigue, and operational inefficiencies have reached a critical point of failure.”
The credit union further cited the economy as compounding the challenges by increasing the cost of building maintenance and increasing member delinquencies, and noted it reported negative earnings in 2024 and the “financial trends have not been favorable since 2019.”
It said Pelican State CU can provide more competitive products and services, as well as access points. It added its single location will remain open.
Postal CU had a large $168,392 loss as of March 31, with net worth of 20.23%. It did not indicate any plans to distribute net worth. Pelican State reported $637,993 in net income with net worth of 9.73 as of the end of Q1.
Can’t Afford Technology, Training & More
Merging CU: City and County EFCU, Albert Lea, Minn.
Assets: $27.4 million
Members: 1,700
Date Founded: 1950
Date of Member Vote: June 3, 2025
Acquiring CU: Affinity Plus FCU, St. Paul, Minn.
Assets: $4.5 billion
Members: 282,338
City and County’s board told members that “As the digital age has continued to evolve, new demands of our industry have presented themselves. These demands require significant investments in technologies, training, and leadership to be able to effectively address them. The board of directors feels that Affinity Plus FCU is able to address these challenges while continuing the mission of serving our members.”
It cited as the benefits of the merger:
- Expanded products and services
- An extensive cybersecurity program with expanded fraud protections to protect your personal information.
- A network of 33 additional branches across the state as well as a commitment to bringing a new updated branch to the Albert Lea community.
- More free ATMs
- A focus on the local community to include retaining the five employees currently working in the branch.
Net Worth Distribution
If the merger is approved, City and County EFCU said it will distribute $475,000 to members, reflecting an interest rebate of 100% of interest paid on loans, and a bonus dividend of 75% paid on dividends for the 12 months prior to December 31, 2024. The minimum rebate will be $150; the maximum $1,250.
Merger-Related Financial Compensation
The credit union said merger-related compensation will be paid, including:
- Brady Jones, manager of CCEFCU for more than 20 years, who will transfer to a branch manager role at Affinity Plus FCU. Jones will be able to exercise a cash payout of his currently accrued sick time not to exceed $19,920, and will be paid the 10% retention bonus offered to all employees that is not exceed $8,633.
- Two other employees are also being offered pay increases when joining Affinity Plus, along with the retention bonus.
Financial Performance
City and County EFCU had $16,631 in net income as of March 31, with net worth of 9.97%. Affinity Plus had $4.24 million in net income and net worth of 8.38% as of the same day.
Members to Receive $104
Merging CU: ALEC FCU, Baton Rouge, La.
Assets: $6.4 million
Members: 690
Date Founded: 1968
Date of Member Vote: June 5
Acquiring CU: Campus FCU, Baton Rouge, La.
Assets: $894.6 million
Members: 43,180
ALEC FCU (which stands for Association of Louisiana Electric Cooperatives) said it needs to merge because Campus FCU offers a “broader range of products and services.” It cited checking accounts, CD, debit and credit cards, mobile banking, online bill pay and more, along with more branches and ATMs, as benefits of the merger.
The credit union said it will distribute some net worth if the deal is OK’d, saying each member will receive $104 (it has near 30% capital). It said $4 of the dividend will be used to increase the ALEC FCU share par value to CFCU’s $5 from its current $1.
ALEC FCU had net income of $34,976 and net worth of a whopping 29.95%. Campus FCU had $1 million in net income and net worth of 9.81% as of the same date.
A ‘Desire to Retire’; Capital North of 50%
Merging CU: Ann Arbor Postal FCU, Milan Mich.
Assets: $438,795
Members: 99
Date Founded: 1951
Date of Member Vote: June 9
Acquiring CU: University of Michigan CU, Ann Arbor, Mich.
Assets: $1.3 billion
Members: 120,394
Ann Arbor Postal FCU said the “current employees and volunteers of Ann Arbor Postal Federal Credit Union desire to retire.
In addition, it said University of Michigan CU offers a larger FOM, more locations and more services.
AAPFCU had a loss of $2,852 through March 31, with net worth of 56.36% (there will be no net worth distribution). University of Michigan CU had $1.62 million in net income and net worth of 10.66%.
