LA CROSSE, Wis.–Several CUs reporting losses, one CEO getting merger-related compensation, and just one CU returning net worth to members (in the form of a share adjustment) can all be found in this second part of a two-part series in the CU Daily on what’s happening in CU mergers.
Here is what was learned. Part one can be found here.
In Wisconsin, Dairyland Power to Pay Bonus Dividend
Merging Credit Union: Dairyland Power CU, La Cross, Wis.
Assets: $20.4 million
Members: 1,225
Date Chartered: 1952
Date of Member Vote: March 4
Acquiring Credit Union: Gundersen Credit Union, La Crosse, Wis.
Assets: $61.5 million
Members: 3,632
Dairyland Power CU listed the usual reasons for why it needs to merge, including:
- Products and services, and economies of scale
- “More responsive to evolving financial needs.”
- Enhanced digital banking products
- More branch locations
- One DPCU board member will join Gundersen Credit Union
- Employees will be retained
Net Worth Distribution
Dairyland Power said if the merger is approved it will pay a bonus dividend equal to approximately 8.5% of share and certificate balances as of Sept. 2025.
The Financials
Dairyland Power had $306,271 in net income, with net worth of 22.16% as of the Sept. 30. Gunderson Credit Union had $472,920 in net income and net worth of 12.76% as of the end of Q3.
Posting Losses, St. Mary CU Seeks New Fellowship
Merging Credit Union: St. Mary Credit Union, Walsenburg, Colo.
Assets: $7.8 million
Members: 1,531
Date Chartered: 1981
Date of Member Vote: March 4
Acquiring Credit Union: Fellowship Credit Union, Lamar, Colo.
Assets: $54.1 million
Members: 5,878
St. Mary CU said a merger is desirable because it will enable it to provide a variety of competitive loan and share products, additional services, gain economies of scale and give members access to multiple branches.
St. Mary Credit Union posted a loss of $33,180 through the first three quarters of 2025, with net worth of 17.98% (it indicated there would be no net worth distribution). Fellowship CU reported $418,130 in net income and net worth of 9.73% as of Sept. 30.
Small But Profitable, 1st Cooperative FCU Still Says it Needs to Combine
Merging Credit Union: 1st Cooperative FCU, Cayce, S.C.
Assets: $21.6 million
Members: 2,511
Date Chartered: 1970
Date of Member Vote: March 5
Acquiring Credit Union: Caro FCU, Columbia, S.C.
Assets: $124.9 million
Members: 7,137
1st Cooperative Credit Union said a merger would benefit members by providing enhanced services and convenience, cultural alignment of core values, financial strength, scale, and additional branches.
1st Cooperative had $299,059 in net income through Sept. 30, with net worth of 13.94%. Caro Federal had $439,960 in net income as of the same date, with net worth of 16.05%.
Members to Get $20 in Share Adjustment; CEO Gets Merger-Related Comp
Merging Credit Union: CALCOE FCU, Yakima, Wash.
Assets: $43.4 million
Members: 3,625
Date Chartered: 1937
Date of Member Vote: March 6
Acquiring Credit Union: Idaho Central Credit Union, Chubbuck, Idaho
Assets: $13.89 billion
Members: 750,520
CALCOE FCU told members it needs to merge because:
- “It is increasingly difficult to keep up with rapid regulatory change. ICCU has the resources to ensure your credit union is up to date and in compliance.”
- “It is increasingly difficult to offer competitive salaries and benefits to the employees that service your accounts. ICCU has the resources to ensure the employees that service your accounts will receive a competitive salary and benefits. The merger would also positively impact CALCOE employees by opening new paths for career advancement, training, and education.”
- “You deserve the latest technology to access and protect your accounts. ICCU’s focus on security and technology will enhance the financial experience of CALCOE members.”
“Our Credit Union, together with the Yakima Valley, stands to gain immensely from the proposed merger with ICCU—a credit union deeply committed to enriching the lives of its members and uplifting the communities in which they serve,” CALCO said.
Members to Get $20 in Share Adjustment
CALCOE said it will not distribute a portion of its net worth to members. Instead, after noting Idaho Central has a $25 minimum share deposit and CALCOE’s is $5 it said that upon completion of the merger, ICCU will deposit $20 into each regular membership share that is merged to ensure they all meet the minimum share value requirement.
In addition, it said because CALCOE has a higher net worth ratio than ICCU, while ICCU’s total net worth of $1.07 billion is higher than CALCOE’s total net worth of $5.1 million.
Merger-Related Compensation
CALCO said its president and CEO, Leslie Johnson, will be entitled to receive a retention bonus equal to $13,600, payable on the first regular payroll date following the one-year anniversary of the merger. In addition, provided that Johnson remains continuously employed with the credit union through the two-year anniversary of the merger date, she will be entitled to receive an additional retention bonus equal to $13,600, payable on the first regular payroll date following the two-year anniversary of the merger.
The credit union further said Johnson has entered into a two-year employment agreement with Idaho Central to become a marketing strategist employment and will receive a base salary of $136,000 per annum. ICCU said it will also establish a collateral assignment split dollar arrangement for the CEO of the merging credit union, which after five and one-half years following the effective date is projected to provide access to $30,000 per year over a 20-year period.
Financial Performance
CALCOE FCU posted $167,806 in net income through the third quarter, with net worth of 12.13%. Idaho Central had$109 million in net income and net worth of 8.38%.
With Ailing Capital, St. Patrick’s Parish Says Merger is Answer to Prayer
Merging Credit Union: St. Patrick’s Parish Credit Union, Fairfield, Vt.
Assets: $583,930
Members: 312
Date Chartered: 1953
Date of Member Vote: March 16
Acquiring Credit Union: Vermont FCU, South Burlington, Vt.
Assets: $1 billion
Members: 58,570
The board of St. Patrick’s Parish CU told members they should vote in favor of a merger because it would provide “better pricing and services, additional products, enhanced convenience and account access and lower operating costs…The merged credit union will also achieve economies of scale which will permit it to better compete in the increasingly competitive financial services industry.”
St. Patrick’s Parish CU had a loss of $34,891 through Sept. 30, 2025, with net worth of 6.11%. Vermont FCU reported $6.68 million in net income and had net worth of 10.26% as of the same date.
One Response
Why is a tiny credit union in Washington merging with a giant out of state Idaho credit union? How does that help t heir members?