GLENPOOL, Okla.–As part of its industry-leading coverage, the CU Daily’s latest review of proposed mergers among credit unions finds many of the usual reasons cited, but also more payouts to management, one payout to members, two money-losing CUs looking to combine, and an unusual announcement, one CU saying the merger will lead to a reduction in fees of more than $250,000.
Here’s what the CU Daily found:
A Credit Union in the Red Turns to Green Country
Merging Credit Union: First Oklahoma FCU, Glenpool, Okla.
Assets: $28.8 million
Members: 2,260
Year Chartered: 1953
Date of Member Vote: Jan. 13
Acquiring Credit Union: Green Country FCU, Sand Springs, Okla.
Assets: $130.9 million
Members: 9,495
First Oklahoma FCU listed three primary reasons for seeking to merge:
- Expanded Services, Stronger Institution: It said the merger would provide members with an “array of products” that later in its disclosure statement it supported with additional support, including commercial lending, “secure online and mobile banking platforms,” expanded infrastructure and “more savings and checking account options”
- Honoring Our Shared Roots. “Green Country FCU was founded by employees of ARMCO Steel in 1969, while First Oklahoma was founded in 1923 by postal workers and became Oklahoma’s first credit union. Together, we share a proud history of serving working Oklahomans with affordable, member-focused financial services,” FOFCU said.
- Commitment to People Over Profits. “Green Country FCU is dedicated to carrying forward the values and traditions of First Oklahoma while continuing to deliver personalized service, financial education, and relationship-based banking.”
First Oklahoma FCU reported a $401,334 loss through Sept. 30, with net worth of 8.25%. Green Country FCU had $580,705 in net income and net worth of 8.85% as of the same date.
Two Credit Unions That Are Both Losing Money Seek to Combine
Merging Credit Union: Greater Latrobe Schools FCU, Latrobe, Penn.
Assets: $2.03 million
Members: 339
Year Chartered: 1968
Date of Member Vote: Jan. 14
Acquiring Credit Union: Western PA FCU, New Kensington, Penn.
Assets: $22 million
Members: 1,251
GLSFCU’s board told members they should vote in favor of the merger because the “manager of Greater Latrobe Schools FCU is retiring with no likely prospect of hiring a qualified replacement. The merger will provide the members of the merging credit union with access to more services.”
Members were told those additional services include mobile banking, remote deposit, checking accounts, indirect auto loans, credit cards and an “informative website,” among other benefits.
Both credit unions are reporting losses. Greater Latrobe Schools reported a loss of $25,623 as of Sept. 30, with net worth of 16.62% (it did not indicate there would be any net worth distribution). Western PA FCU posted a $76,122 loss and net worth of 13.08% as of the same date. Moreover, WPAFCU had a loss of $220,452 as of year-end 2024.
Two Utah CUs Cite Cost Savings, Enhanced Products
Merging Credit Union: Nebo Credit Union, Springville, Utah
Assets: $144.8 million
Members: 12,976
Year Chartered: 1956
Date of Member Vote: Jan. 15
Acquiring Credit Union: Cyprus FCU, West Jordan, Utah
Assets: $1.9 billion
Members: 147,499
Nebo CU told members the merger is in their best interests and in the best interests of members of Cyprus FCU because it will help “achieve operational cost savings and improve the operational and financial strength of the Continuing Credit Union, ultimately enhancing member value.”
NCU also cited more branches, “new and enhanced” products and services, additional types of loans, access to wealth management and insurance services and expanded online services as additional benefits of a combination.
Cyprus FCU members will benefit from three additional locations in Utah County, increases returns to members from additional capital and efficiencies, it said.
“Leveraging the best outreach and educational programs of each credit union will enrich the lives of members and the communities the Continuing Credit Union will serve,” it added.
Merger-Related Financial Benefits
Nebo Credit Union said that if the merger is approved, upon completion, CEO Dale Phelps will retire and be paid $226,000, and will also have his insurance costs paid until eligible for Medicare.
Nebo Credit Union had $453,287 in net income as of Sept. 30, with net worth of 16.72% (it indicated there would be no share distribution). Cyprus FCU had $10.1 million in net income and net worth of 11.75% as of the same date.
A CU Losing Money Sees Opportunity to Improve Health
Merging Credit Union: Coral Community FCU, Ft. Lauderdale, Fla.
Assets: $40.2 million
Members: 3,636
Year Chartered: 1975
Date of Member Vote: Jan. 21
Acquiring Credit Union: Broward Healthcare FCU, Ft. Lauderdale, Fla.
Assets: $96.2 million
Members: 8,338
“…A merger will create a stronger, more sustainable organization, one that continues to put members first and remains deeply committed to shared mission of service and financial well-being,” Coral Community’s board told members. “This merger will allow us to provide access to additional branch locations, expanded products and services, and the combined strength and resources to ensure the long term growth and stability for your credit union.”
Coral Community reported a loss of $81,145 through the first three quarters of this year, with net worth of 9.04%. Broward Healthcare FCU had $200,158 in net income and net worth of 10.04% as of Sept. 30.
CU Cites Fee Reduction as Result of Merger
Merging Credit Union: Fort Financial FCU, Fort Wayne, Ind.
Assets: $362.7 million
Members: 23,593
Year Chartered: 1947
Date of Member Vote: Jan. 26, 2026
Acquiring Credit Union: Inova FCU, Elkhart, Ind.
Assets: $663 million
Members: 47,509
In an unusual statement from a credit union seeking to merge, Fort Financial said it has estimated there will be a “reduction of over $280,000 per year in fees for our members with this merger,” the credit union said.
“This isn’t just a merger; it’s a powerful step forward,” Fort Financial FCU told members. “By partnering, we’re combining two trusted credit unions into one stronger, more innovative, member-focused organization. Together, we’ll have the strength, stability, and shared vision to make an even greater impact in your financial life.”
FFFCU listed new mortgage services, business services, technology, savings options and debit rewards, as benefits to members, as well as a “more robust succession plan for both staff and the board of directors.”
The board of the combined CU, according to Fort Financial, will have 13 members, six of whom will be from its own board.
Financial Performance
Fort Financial had $2.9 million in net income through Sept. 30, with net worth of 11.7%. Inova FCU had a loss of $798,895 as of the end of the third quarter, with net worth of 8.06%.
Payouts Planned for Members and Management
Merging Credit Union: Cove FCU, Edgewood, Ky.
Assets: $79,7 million
Members: 6,511
Year Chartered: 1970
Date of Member Vote: Feb. 3
Acquiring Credit Union: University of Kentucky FCU, Lexington, Ky.
Assets: $1.58 billion
Members: 110,916
In its notice to members, Cove FCU said a merger would provide:
- Increased efficiency of operations and economies of scale that will lead to an “enhanced array of innovative financial products and services”
- Expansion of human resources and opportunities for employee growth, saying a “next step” does not currently exist for many employees
- Service delivery to members. “With a fee structure in place that is lower than the average credit union of its size, University of Kentucky FCU shares a similar philosophy with Cove FCU of providing superior service at an affordable price for its members,” it said.
Payout to Members
Cove FCU said it will distribute approximately $3.5 million to members, which represents 28.67% of its net worth. Members will be paid:
- Less than one year of membership: $100
- More than one year, less than five: $200
- More than five years, less than 10: $350
- More than 10 years, less than 20: $550
- More than 20 years: $800
Payouts to Management
Four members of management will receive merger-related compensation, including:
- CEO Tom Burns: Retention bonus paid by Cove of $160,000
- CFO Butch Gordon: Retention bonus paid by Cove of $123,400 and retention bonus paid by UKFCU of $15,000
- COO Betsy Sutton: Retention bonus paid by Cove of $123,400 and retention bonus paid by UKFCU of $15,000
- Director of Accounting Jerri Tinnell: Retention bonus paid by Cove of $90,400 and retention bonus paid by UKFCU of $10,000
Cove Federal Credit Union had $288,694 in net income through Sept. 30, with net worth of 15.59%. UKFCU had net income of $8.99 million and net worth of 11.35% as of the same date.
