ROSWELL, N.M.–This latest analysis of what credit unions are telling members as they seek to merge includes one citing modest resources, several proposals that cross state lines, at least one CU with Dixie Cup issues, and a $20 deposit for everyone if the deal is approved.
This is the sixth in a series found only in the CU Daily that examines nearly 100 of the most recent merger proposals that have been put in front of credit union members. The series has been divided into articles covering approximately 10 mergers/proposals each, to give time to readers to see what is driving mergers, what members are being told, who’s getting what, and more.
- Part I in this series can be found here.
- Part II in this series can be found here.
- Part III in this series can be found here.
- Part IV in this series can be found here
- Part V can be found here.
About This Series
All of the reporting has been drawn from the merger-related disclosures required of all federally insured CUs.
Editor’s Note: The financial data cited for each of the credit unions below is drawn from the time period during which the proposed mergers were announced and disclosure forms were provided to members. For that reason, some of the financial data cite performance through the Q2 and Q3 5300 forms, while others cite data through year-end.
Here’s a look at what the CU Daily has found.
No Alien Outsiders a Part of This Combination
Merging Credit Union: Telco Roswell New Mexico FCU, Roswell, N.M.
Assets: $5.7 million
Members: 889
Year Chartered: 1952
Date of Member Vote:
Acquiring Credit Union: Roswell Community FCU, Roswell, N.M.
Assets: $46.6 million
Members: 2,829
Telco Roswell New Mexico FCU told members its “modest resources limit its ability to invest in products, services, and technology that members, especially younger members, demand, and because it has experienced challenges with attracting and retaining talent.
It said the merger will ensure decisions continue to be made locally and will also bring expanded product offerings.
It noted it has just one staff member, who will be retained.
TRNMFCU posted a $67,723 loss through Sept. 30, 2024, and although it had net worth of 30.81%, said there would be no distribution to members. RCFCU had $601,816 in net income and net worth of 14.15% as of the same date.
Seeing an Advantage, One CU Has a Zeal to Merge
Merging Credit Union: Credit Union Advantage CU, Southfield, Mich.
Assets: $29.9 million
Members: 2,127
Year Chartered: 1969
Date of Member Vote: Dec. 27
Acquiring Credit Union: Zeal CU, Livonia, Mich.
Assets: $839.3 million
Members: 65,931
Credit Union Advantage CU (it has “credit union” in its name twice) said it has “found it difficult to attract new members. Our membership continues to decline despite efforts on our part to grow.”
Moreover, CUACU said, its lone branch on the Ascension Providence Southfield campus is inconvenient for most of its members and CEO Jan Zuchowicz plans to retire in 2025.
“We have no internal candidate, coupled with the difficulty small credit unions, like ours, have in competing with larger credit unions to hire a CEO,” CUACU further stated, adding it has also has challenges with technology and regulations.
Through Sept. 30, Credit Union Advantage CU reported a $99,093 loss, with net worth at 11.82%. Zeal CU posted $16.8 million in net income and net worth of 19.76% as of the same date.
Money-Losing Team and Wheel Seeks Partners
Merging Credit Union: Team and Wheel FCU, Winston-Salem, N.C.
Assets: $11.79 million
Members: 1,697
Year Chartered: 1974
Date of Member Vote: Dec. 28
Acquiring Credit Union: American Partners FCU, Reidsville, N.C.
Assets: $98.6 million
Members: 9,118
In its fill in the blanks statement to members, Team and Wheel FCU said it needs to merge because “American Partners FCU has many services that Team and Wheel FCU does not have, as well as additional locations.”
Team and Wheel FCU lost $219,888 through the end of the third quarter, with capital at 12.83%. American Partners FCU posted $384,686 in net income to go with net worth of 8.72% as of the same date.
Alabama CU Reaches into Georgia With Combination
Merging Credit Union: Mutual Savings CU, Atlanta
Assets: $72.4 million
Members: 5,505
Year Chartered: 1991
Date of Member Vote:
Acquiring Credit Union: APCO Employees CU, Birmingham, Ala.
Assets: $3.5 billion
Members: 85,419
Mutual Savings cited improved products and services, better pricing, enhanced convenience and lower operating costs as reasons members should vote in favor of the merger, adding its “members-first philosophy” will be retained.
It said its office will remain open. APCO ECU does operate several other branches in Georgia.
As part of the merger, Mutual Savings CU said its president, Elliott Moon, was to be paid a one-time retention bonus of $46,000.
Mutual Savings CU had $149,605 in net income through Sept. 30, 2024, with net worth of 14.76% (it indicated it will not be distributing any capital to members). APCO Employees CU reported $7.9 million in net income and net worth of 14% as of the same date.
In Beehive State, ‘Member-First Philosophy’ is Cited
Merging Credit Union: TransWest Credit Union, Salt Lake City
Assets: $196.6 million
Members: 15,493
Year Chartered: 1985
Date of Member Vote: Dec. 30
Acquiring Credit Union: Utah Community FCU, Provo, Utah
Assets: $3.11 billion
Members: 243,731
In a statement almost identical to that provided to members of Mutual Savings CU in its bid to merge into Utah Community FCU (above), TransWest CU cited improved products and services, better pricing, enhanced convenience and lower operating costs, as well as retention of its “members-first philosophy” as reasons to vote in favor.
TransWest CU is profitable, reporting $1.66 million in net income through Sept. 30, with net worth of 10.65%. UCFCU had $29.3 million in net income and net worth of 10.19% as of the same date.
‘We Don’t Need to Merge,’ But…
Merging Credit Union: Bloom Credit Union, Grand Rapids, Mich.
Assets: $193.1 million
Members: 13,361
Year Chartered: 1951
Date of Member Vote: Jan. 7, 2025
Acquiring Credit Union: West Michigan Credit Union, Grand Rapids, Mich.
Assets: $251.2 million
Members: 18,034
Bloom Credit Union told members it is a “financially strong credit union serving its members and does not need to merge to survive.”
“However, in today’s high-tech environment, the costs of technology and regulations, coupled with the cost of recruiting and retaining talented employees, demonstrate that larger organizations can do more for their members.”
BCU said West Michigan CU is similarly strong and has committed to retaining employees and branches, as well as to adding an unusually large number of its board members (five) to the board of WMFCU. In addition, Bloom CU CEO Joe Heintskill would become CEO of West Michigan CU.
Bloom Credit Union posted $501,586 in net income through Sept. 30, with net worth of 10.34%, while West Michigan CU had $2.8 million in net income and net worth of 20.01%.
Another CU Merging into Credit Union 1 Sees a Synergy; 24% Capital, No Distribution
Merging Credit Union: Synergy Partners CU, Chicago
Assets: $11.1 million
Members:1,390
Year Chartered: 1935
Date of Member Vote: Jan. 8, 2025
Acquiring Credit Union: Credit Union 1, Lombard, Ill.
Assets: $1.9 billion
Members: 110,468
One of several credit unions being absorbed via merger by Credit Union 1, Synergy Partners message to members is nearly identical as that used by the other CUs, with SPCU saying the merger is desirable because “Credit Union 1 operates with the technology and systems that align with our members’ needs. Their internal core values align 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.”
As part of the merger, Synergy Partners said retention bonuses will be paid to several people, including:
- CEO Brian Blaszak, who will be paid a bonus of $75,000 and see an increase in pay of $16,000 until he retires
- Branch Manager Sonia Perez, who will be paid a retention bonus of $25,000 and who will receive a $23,000 increase in annual salary
- Banker Margarita Padilla-Lizama, who will be paid a retention bonus of $5,000 and who will receive an annual increase in pay of $6,800.
Synergy Partners CU had $3,514 in net income through Sept. 30, with capital at 24.17% (it said there would be no net worth distribution). Credit Union 1 had net income of $4 million and net worth of 9.82% as of the same date.
Reporting Losses, Atlantic Financial Seeks to Combine
Merging Credit Union: Atlantic Financial FCU, Hunt Valley, Md.
Assets: $99.2 million
Members: 8,880
Year Chartered: 1950
Date of Member Vote: Jan. 14, 2025
Acquiring Credit Union: Freedom of Maryland FCU, Bel Air, Md.
Assets: $466.9 million
Members: 32,385
Atlantic Financial told members the merger would provide expanded branches, improved technology, expanded products and services (including business banking and wealth management) and more convenience and accessibility.
Related to the merger, AFFCU said President/CEO Matthew Piazza was to receive a one-time retention bonus to remain through the completion of the merger of $38,781, while COO Bethany Kenyon was to receive $28,750.
Atlantic Financial posted a $414,453 loss during the first three quarters of 2024, with net worth of 10.42%. Freedom of Maryland reported $143,345 in net income and net worth of 7.82% as of the same date.
A CU Serving Dixie Cup Workers Says It’s Being Forced to Close Office, Change Name
Merging Credit Union: Fort Smith Dixie Cup FCU, Fort Smith, Ark.
Assets: $11 million
Members: 1,086
Year Chartered: 1949
Date of Member Vote: Jan. 9
Acquiring Credit Union: Baptist Health FCU, Little Rock, Ark.
Assets: $38.7 million
Members: 8,229
Fort Smith Dixie Cup FCU said it needs to merge in order to offer additional services and because its sponsor has asked it to vacate its office space and to change the name of the credit union.
With net worth north of 30%, FSDFCU said it would distribute $75,000 worth of its capital as follows: 10% bonus dividend on balances between $100-$500; 25% bonus dividend on balances between $500 and $5,000, and a 65% bonus dividend on balances of more than $5,000. Its remaining capital will go toward establishing a standalone branch to continue to serve its members, the CU said.
Fort Smith Dixie Cup FCU earned $26,707 in net income through Sept. 30, with capital at 35.44%. BHFCU posted $174,226 in net income and had net worth of 18.01%.
Idaho CU Moves into Arizona; Offering $20 Deposit to Members
Merging Credit Union: Tucson Old Pueblo Credit Union, Tucson, Ariz.
Assets: $211.3 million
Members: 17,188
Year Chartered: 1935
Date of Member Vote: Jan. 6
Acquiring Credit Union: Idaho Central CU, Chubbuck, Idaho
Assets: $11.6 billion
Members: 656,539
Tucson Old Pueblo CU, which is struggling with its capital, offered four bullet-points as reasons members should vote in favor of merging, including:
- “It is increasingly difficult to keep up with rapid regulatory change.”
- “It is increasingly difficult to offer competitive salaries and benefits to the employes that service your accounts.”
- “You deserve the latest technology.”
- “We believe ICCU is a great choice for a merger and they will pick up where TOPCUY left off and take you into the future.”
Tucson Old Pueblo said it will not distribute any capital, but because the minimum to join ICCU is $25, vs. $5 at TOPCU, it will deposit $20 into each member’s account in the event the merger is approved.
Given the two credit unions are headquartered nearly 1,000 miles apart, TOPCU said its two Arizona branches will remain open.
TOPCU reported $74,238 in net income through Sept. 30, with net worth of 6.84%. Idaho Central reported $87.2 million in net income and net worth of 8.77% as of the same date.
