Even More Payouts for Execs, Board Members; End for a CU Serving a Classic Brand, & More Uncovered in Last in Series on CU Mergers

LOUISVILLE, Ky.—This last in a CU Daily series on credit union mergers finds the end for a CU serving a classic American brand, more payouts to CU leaders even when the bottom line is red, bonuses to CEOs for finding other merger partners, pay boosts for board members, and retirements and the sunsetting of core systems listed as reasons for closing up shop.

This is part three in this series. Part one can be found here, part two, here. 

Below is a review of what credit unions have told their members about their need to merge, according to documents filed with NCUA.

From the Palmetto State to the Bluegrass State

Merging Credit Union: Rural Cooperatives Credit Union, Louisville, Ky

Assets: $34.1 million

Members: 3,176

Year Chartered: 1964

Date of Member Vote: Dec. 10

Acquiring Credit Union: Caro Federal Credit Union, Columbia, S.C. 

Assets: $124.9 million

Members: 7.137

“The primary reason for our merger is to enhance the services, convenience, and benefits to members of both credit unions and the communities and SEGs which we serve,” RCCU said in its statement to members. “We have a fiduciary responsibility to do what is in the best interest of our memberships. We believe this merger will allow rural cooperatives credit union to thrive for generations to come.”

It further cited cultural alignment, financial strength, scale, expanded product offerings and shared branches and more as reasons to vote in favor. 

The two credit unions are approximately 512 miles apart. 

Financial Performance

Rural Cooperatives CU had $59,520 in net income during the first three quarters of the year, with net worth of 13.07%. Caro Federal had $439,960 in net income and net worth of 16.05% as of the same date.

CU Serving A Classic Brand Sees to Renew its Fizz

Merging Credit Union: Coca-Cola FCU, Atlanta

Assets: $206.1 million

Members: 14,313

Year Chartered: 1965

Date of Member Vote: Dec. 11

Acquiring Credit Union: Associated Credit Union, Norcross, Ga.

Assets: $2.22 billion

Members: 157,053

The board of Coca-Cola Credit Union, which uses the tagline “Providing refreshing financial solutions for every stage of life,”  said the merger is in the best interests of members because it will create additional “economies of scale that will increase financial strength and stability, will offer addition products, services and technologies, will offer additional branch locations, and will increase community services, especially financial education and social services.”

Coca-Cola FCU had $726,082 in net income through Sept. 30, with net worth of 13.65%. Associated CU had $11.23 million in net income and net worth of 12.95% as of the same date. 

Significantly Undercapitalized CU One of Three (In This Report) Merging Into Credit Union 1; Some Members Object

Merging Credit Union: GP Federal Credit Union, Rome, Ga.

Assets: $144.5 million

Members: 9,575

Year Chartered: 1935

Date of Member Vote: Dec. 11

Acquiring Credit Union: Credit Union 1, Lombard, Ill.

Assets: $2.29 billion

Members: 160,552

Illinois-based Credit Union 1 is among the most aggressive credit unions in the country in merging in other CUs, and GP FCU, which posted a loss through Sept. 30, is one of three credit unions it is seeking to merge in in this latest report by the CU Daily.

In its message to members, GP FCU used language almost identical to that used in other merger applications related to Credit Union 1, including that the merger is in the best interests of members because the acquiring CU “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 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.

The statement to members includes a bullet-pointed list of benefits that include expanded branches and ATMs, improved technology, expanded products and services, enhanced financial wellness and enhanced back office operations. 

Payouts to Management

According to the documents filed with NCUA, several executives with GPFCU will receive merger-related compensation, including:

• President and CEO Robert Collins, who is to receive a retention incentive of $150,000 payable upon closing of the merger, and will also be offered continued employment with Credit Union 1 for five years following the merger.
• VP-Risk and Compliance Joan Hicks, VP-Finance Melissa Hickman, and VP-Member Services Chris Mena, who all will be offered a retention incentive of $25,000.
• Branch Manager Stephanie Evans, who will see an annual salary increase of $12,500. 

Financial Performance

As of Sept. 30, GP FCU posted a loss of $159,930, with net worth of just 4.91%. Credit Union 1 had net income of $4.6 million and net worth of 11.04% as of the same date. 

Member Comments

Three member comments were filed with NCUA, including:

• I find it deeply disheartening to witness yet another small, community-oriented credit union being absorbed by a vast financial conglomerate. The gradual erosion of local, member-focused institutions in favor of large-scale operations is a troubling trend that undermines the very principles upon which credit unions were founded.
  
  While I acknowledge that the enhanced technological infrastructure proposed by Credit Union 1 may appear advantageous—particularly when compared to the current Mobicint system utilized by GP Federal Credit Union—my primary concern lies in the loss of essential and practical member functions.
  
  Credit Union 1 mandates the use of Zelle for member transfers. Within my own family, six of us currently utilize GP’s secure member-to-member transfer system for our daily financial interactions. According to Credit Union 1 (as evidenced by the attached screenshot), this feature will be discontinued, and members will instead be required to use Zelle.
  
  Zelle, unfortunately, has become synonymous with rampant fraud and unauthorized transactions nationwide. It is not a service I am willing to use. Consequently, should this merger proceed, my account—and those of my family members—will effectively become unusable. The broader local community will undoubtedly feel the impact as well.
  
  Small credit unions are the lifeblood of their communities. They should be preserved—not absorbed.
• The letter from GP Federal mentions that the credit union’s net worth ratio is lower than that of Credit Union 1, but it does not provide the most recent value for the ratio. So, what is the most recently calculated net worth ratio? Secondly, the letter presents the benefits of the merger but offers no information on the consequences of voting no. What are those consequences (or risks)? Is there a risk of NCUA forcing a merger or closure? I’ll be unable to attend the meeting on December 11, so would like answers to these questions in order to make an informed choice.
• I prefer a local community credit union or at least one located in the Southeast United States. GP Credit Union began as a Georgia Power credit union. That is what attracted me to it. What would be required to maintain the current GP FCU without merger? The compensation increases for existing GP FCU employees prejudices them to favor this merger. I prefer to have more than one option to choose from. Was the Southern Energy Credit Union in Birmingham, Alabama, considered as a possible merger?

Members Won’t Have to Adjust to Much of a Name Change

Merging Credit Union: Credit Union of Vermont, Rutland, Vt.

Assets: $81 million

Members: 3,434

Year Chartered: 1958

Date of Member Vote: Dec. 15

Acquiring Credit Union: Vermont FCU, South Burlington, Vt.

Assets: $1.02 billion

Members: 58,570

Credit Union of Vermont said a merger with the similarly named Vermont FCU would offer better pricing and services, additional products, enhanced convenience and lower operating costs due to economies of scale. 

Payout to Members

Credit Union of Vermont said it will distribute some of its net worth if the merger is approved, with a one-time special dividend of $100 to each eligible member plus an amount estimated to be between 4.25% and 4.5% of a member’s average balance on their shares for the six months prior to the merger announcement. The total amount to be paid out is capped at $1.25 million.

Credit Union of Vermont had $1.05 million in net income over the first nine months of 2025, with net worth of 14.78%, while Vermont FCU had $6.68 million in net income and net worth of 10.26%.

Payout to Manager

As part of the merger, Graphic Arts CU said Assistant Manager and Board Member Brenda Hartley will receive a $16,000 severance payment. 

Money-Losing GACU Aims to Create a Better Picture

Merging Credit Union: Graphic Arts CU, Shreveport, La.

Assets: $1.069 million

Members: 223

Year Chartered: 1952

Date of Member Vote: Dec. 15

Acquiring Credit Union: Bossier FCU, Bossier City, La.

Assets: $242 million

Members: 28,766

In a fill-in-the-blanks statement to members, the board of Graphic Arts CU said a merger will provide members with an expanded range of products and services and access points. “To achieve this, they actively sought a merger partner capable of delivering a broader suite of financial solutions and a more extensive branch network,” the CU told members.

Graphic Arts Credit Union, which was once one of five CUs in the U.S. using that name, posted a $35,536 loss as of Sept. 30, with net worth of 26.04% (it did not indicate any plans to distribute a portion of its capital). Bosser City FCU had $2.049 million in net income and net worth of 10.89% as of Q3.

A Pay Increase Climb for Executives & Board Members

Merging Credit Union: Community Choice CU, Commerce City, Colo.

Assets: $95.84 million

Members: 6,384

Year Chartered:  1952

Date of Member Vote: Dec. 18

Acquiring Credit Union: Climb Credit Union, Arvada, Colo.

Assets: $678.1 million

Members: 40,677

The CCCU board said simply to members that it feels a “merger would provide additional expertise, growth and resources required to better serve our communities and our members.”

It also pointed to additional branches as a plus.

Pay Increases for Management, Board

Community Choice indicated a 10 people are to receive financial compensation related to the merger if it is approved, In all cases, the credit union said the reason for the increase is “alignment with market salary for combined size,” including for board members.

• CEO Rainy Thoen, $78,564.08
• CFO Loretta Thomas, $27,800
• CIO Michelle Craft, $35,580
• Member Solutions Dan Collins: $8,436
• Branch Manager Tiffany Stepp: $15,120
• Board Member Deb Larsen, $12,000
• Board Member Karl White, $12,000
• Board Member Don May, $12,000
• Board member Jose Guardioa, $12,000

It did not indicate there would be any distribution of its 14.97% net worth to the members.

Community Choice CU had $233,413 in net income as of Sept. 30, while Climb Credit Union posted $579,015 in net income and had net worth of 11.41% as of the same date.

Payout to Execs; Bonus to CEO for Bringing In Other Merger Partners

Merging Credit Union: Spirit Financial Credit Union, Levittown, Penn.

Assets: $69 million

Members: 3,794

Year Chartered: 1953

Date of Member Vote: Dec. 22

Acquiring Credit Union: Credit Union 1, Lombard, Ill.

Assets: $2.29 billion

Members: 160,552

As noted elsewhere in this latest series by the CU Daily, Illinois-based Credit Union 1 is among the most aggressive credit unions in the country in merging in other CUs, and Spirit Financial CU is one of three credit unions in three different states it is seeking to merge in in this latest analysis.

In its message to members, Spirit Financial used language identical to that used in other merger applications related to Credit Union 1, including that the merger is in the best interests of members because the acquiring CU “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 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.”

Similar to the other statements by CUs merging into Credit Union 1, it also stated it also included a bullet-pointed list of benefits that include expanded branches and ATMs, improved technology, expanded products and services, enhanced financial wellness and enhanced back office operations.

Payouts to Management

If the merger is approved, a number of executives with Spirit Financial CU are to receive financial benefits, including:

• CEO David Obarowski, who is to receive a merger-related retention incentive of $200,000, along with continue employment for five years with an annual pay increase of $57,381.  He will also be eligible to receive a performance-based incentive ranging from $1 to up $50,000 “for each merger partner he successfully helps attract and integrates into the Continuing Credit Union,” the statement filed with NCUA reads. In addition, Spirit Financial said Obarowski’s previously established SERP will become fully vested and valued at $3 million, with $150,000 to be paid annually over a 20-year period.
• Compliance Officer Melanie Cobb is to see an annual pay increase of $7,404.80 and receive a retention bonus of $6,177,60
• Collection Manager Sharon McCullough is to receive an annual pay increase of $10,431.20 and a retention bonus of $5,980.
• Branch Manager Michelle Tirendi is to receive an annual salary increase of $18,173 and a retention bonus of $5,262.40.
• Loan Officer Sarah Nagle is to receive an annual pay increase of $6,626.88 and a retention bonus of $5,399.68.

Spirit Financial CU told members there would be no distribution of net worth because they will be offered a “host of updated services an options with the Continuing Credit Union that Spirit Financial Credit Union is unable to provide in this economic environment.”

Financial Performance

Spirit Financial CU had $365,128 in net income through Sept. 30, with net worth of 13.18%. %. Credit Union 1 had net income of $4.6 million and net worth of 11.04% as of the same date. 

Member Comment

One member filed a comment:

• I am voting against the proposed merger of Spirit Financial Credit Union With Credit Union 1. Credit Union 1 is based in Lombard, Illinois. All of its branches are in Illinois. There is no advantage to the Spirit Credit Union member to merge with Credit Union 1. Merging with Credit Union 1 would take away the local Bucks County focus of Spirit Financial Credit Union, which should be its mission of Spirit Financial Credit Union would want to merge with another local Bucks County credit union, I would be in favor of that merger.

Two ‘Established Entities’ to Combine in Niagara Falls

Merging Credit Union: Niagara Frontier Federal Municipal Employees Credit Union, Niagara Falls, N.Y.

Assets: $2 million

Members: 278

Year Chartered: 1931

Date of Member Vote: Dec. 29

Acquiring Credit Union: Niagara Falls Teachers FCU, Niagara Falls, N.Y.

Assets: $11.5 million

Members: 1,235

Niagara Frontier Federal Municipal EFCU said a merger would provide for “consolidation of energies and resources…to better serve the members in a competitive and secure environment.
It further said a merger would provide more member access, more products and services and allow it to be “more responsive to evolving financial needs.”

“Beyond these immediate benefits, this merger will combine two established entities that share similar values and commitment to their members, people and culture, the credit union said. “These two organizations share a core purpose of advancing and promoting the interests of the public to empower people to achieve a brighter financial future.”

The Financials

NFFMECU reported a loss of $58,736 as of Sept. 30, with net worth of 8.35%. Niagara Falls Teachers FCU had $163,147 in net income and net worth of 19.26% as of the same date. 

As It Hits the Century Mark, CU Pulls Into Its Last Station

Merging Credit Union: Springfield Street Railway Employees CU, Springfield, Mass.

Assets: $1.1 million

Members: 166

Year Chartered: 1926

Date of Member Vote: Dec. 29

Acquiring Credit Union: Pioneer Valley FCU, Springfield, Mass.

Assets: $159.5 million

Members: 11,491

Springfield Street Railway ECU told members it needs to merge because its core system vendor will be ceasing operations at year-end, and that a merger will allow it to offer expanded products, to achieve operating efficiencies, have greater regulatory expertise, offer ATMs and other services. It offered a detailed list of the new products and other offerings. 

Merger-Related Compensation

SSRECU said its manager, Walter Kocor, will receive a one-time severance bonus of $42,000 and will retire with the merger. 

Springfield Street Railway had $24,262 in net income during the first three quarters, with net worth of 30.01% (it did not indicate any plan to distribute capital).  Pioneer Valley had $563.939 in net income and net worth of 11.55% as of Sept. 30.

At CU Operating in the Red, Some Green for Two Execs

Merging Credit Union: West Monroe FCU, West Monroe, La.

Assets: $3.9 million

Members: 407

Year Chartered: 1976

Date of Member Vote: Jan. 6, 2026

Acquiring Credit Union: Centric FCU, West Monroe, La.

Assets: $416.7-million

Members: 36,957

West Monroe FCU listed more branch locations, new products and services, mobile banking, shared branching, small business services and more as benefits of merging. 

“But beyond these immediate benefits, this merger will combine two established entities that share similar values and commitment to their members,” the credit union told members.

Despite net worth of 5.81%, if the merger is approved WMFCU said it would distribute a merger-dividend not to exceed $80,000 to members. 

Payouts to Management

Two people will receive merger-related financial benefits, according to West Monroe FCU.

• CEO/Manager Erik Pearson  is to receive $91,070 as part of a change in control agreement.
• Vice President Tonya Spurlock is to receive $66,497 for the same reason, and will also be offered a position with Centric FCU with a one-time “transition payment” of $10,000 if the merger is successful and a one-time retention bonus of $5,000 one year after the merger. 

The Financials

West Monroe FCU lost $215,512 as of Sept. 30. Centric FCU had $1.2 million in net income and net worth of 12.56% as of the same date. 

Payout to Two Execs at CU Merging into Credit Union 1

Merging Credit Union: First Area Credit Union, Saginaw, Mich.

Assets: $37.3 million     

Members: 2,896

Year Chartered: 1961

Date of Member Vote: Jan. 14, 2026

Acquiring Credit Union: Credit Union 1, Lombard, Ill.

Assets: $2.29 billion

Members: 160,552

As reported elsewhere in this latest series by the CU Daily, Illinois-based Credit Union 1 is among the most aggressive credit unions in the country in merging in other CUs, and First Area CU is one of three credit unions it is seeking to merge in in this latest analysis, all in different states. 

In its message to members, First Area CU used language identical to that used in other merger applications related to Credit Union 1, including that the merger is in the best interests of members because the acquiring CU “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 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.”

Similar to the other statements by CUs merging into Credit Union 1, FACU also stated it also included a bullet-pointed list of benefits that include expanded branches and ATMs, improved technology, expanded products and services, enhanced financial wellness and enhanced back office operations.

Merger-Related Payouts

Two people with First Area CU are to receive merger-related compensation if the combination is approved by members.

• President and CEO Lynn McCoy is to receive a merger-retention incentive of $125,000 upon the closing of the emerger and will also be offered continued employment with Credit Union 1 for three years after the merger.
• Operations Manager Deanna Sayer is to receive a merger-retention bonus of $5,000 and an increase in compensation of $12,500. 

Financial Performance

First Area Credit Union had $123,065 in net income through Q3, with net worth of 10.67%. Credit Union 1 had net income of $4.6 million and net worth of 11.04% as of the same date.