Some Big Severance Packages (Even at CUs in the Red), Just 1 Special Dividend in This Merger Update: Part II

ASHLAND, Ky.–Some large severance packages for execs at CUs that are seeking to merge, and just one special dividend can be found in this latest round-up by the CU Daily of credit union merger proposals. This is part II in a series; part I can be found here.

Bluegrass Community CU Aims to Combine with CU of Big Blue Nation

Merging Credit Union: Bluegrass Community FCU, Ashland, Ky.

Assets: $12.9 million

Members: 1,872

Year Founded: 1958

Date of Member Vote: Aug. 17

Acquiring Credit Union: University of Kentucky FCU, Lexington

Assets: $1.79 billion

Members: 121,057

Bluegrass Community CU told members they would benefit from”

• Enhanced products and digital banking services. 
• Economies of scale – from efficiencies to purchasing power “in ways that would be challenging otherwise. As financial cooperatives, credit unions strive to compete in a world with vast and constant change, uncertainty in the regulatory environment, and increasing competition with fintechs and large banks. Scale lowers costs of doing business
• Growth for employees throughout the region. 
• Enhanced member service and Increased access across the state.

Financial Performance

Bluegrass Community reported a loss of $25,506 as of June 30, with net worth of 9.56%. UKFCU posted $2.54 million in first-half net income, with net worth of 10.91%. 

Merger-Related Compensation

Bluegrass Community said its CEO, Matt Bell, would be paid a $50,000 retention bonus.

At CU Where CEO Has Retired Twice, and Returned, Big Severance Packages Being Paid

Merging Credit Union: My Credit Union, Haslet, Texas

Assets:  $58.2 million

Members: 6,397

Year Founded: 1975

Date of Member Vote: Aug. 17

Acquiring Credit Union: Texas Trust CU, Arlington, Texas

Assets: $2.11 billion

Members: 136,360

“Over the last several years, our President has retired twice, only to return when unforeseen circumstances arose. For an institution of our size, it has become very difficult to find and hire a quality, President. The financial services industry is also undergoing ongoing commoditization, making it difficult for smaller institutions to achieve the economies of scale and critical mass necessary to support operations. The Board of Directors is committed to providing the best leadership and quality services for the membership,” My CU told members. “Due to the challenges over the last several years, the Board determined it would be in the best interest of the membership to seek a merger partner. The merger with TXTCU will increase scale, allowing our members added convenience…”

Financial Performance

My Credit Union had $222,351 in net income as of its June 30 5300, with net worth of 12.78%. Texas Trust had $6.3 million in net income and had net worth of 10.55% as of the same date. 

Merger-Related Compensation

According to My CU, if the merger is approved, the following will receive related compensation:

• President/CEO Mark Massey: “One month per year (35 years) severance package” of $535,798 and a retention bonus of $30,045.
• Area General Manager Angela Gray: “One week per year (24 years) severance package” of $30,045 and a retention bonus of $12,951.47.
• Director of Operations Barbara Stapleton: One week per year (one year) severance package of $1,442.20 and retention bonus of $12,250.
• AVP-Support Services Jeff Hurley: One week per year (19 years) severance package of $25,551.20 and retention bonus of 411,654.93.
• AVP-Lending Tina Whitus: One week per year severance package (17 years) of $21,120.12 and a retention bonus of $10,767.12.

In Big Florida Merger, a Payout for 1 Exec, Plus Members; One Member Questions Board Mix, Timing of Meeting

Merging Credit Union: Launch Credit Union, Merritt Island, Fla.

Assets: $1.4 billion    

Members: 87,188

Year Founded: 1963

Date of Member Vote: Aug. 24

Acquiring Credit Union: Suncoast Credit Union, Tampa

Assets: $20.7 billion

Members: 1.4 million

In a deal that will create a giant CU stretching from Florida’s East to West Coast, Launch CU, chartered to serve the Kennedy Space Center, is seeking to combine with the largest CU in Florida, Suncoast Credit Union.

“The board and management of both credit unions believe the proposed merger will benefit LCU membership by achieving operational cost savings under a larger credit union, ultimately enhancing member value,” Launch CU told members. 

It added the merger would provide the opportunity to achieve “more positive member impact and value,” including:

• Community Giveback. $5 million community giveback to Launch counties (Brevard and Volusia) – to support scholarships, foodbank, and affordable housing initiatives. “Specifically, this commitment to the communities where LCU operates will fund $2.5 million over 10 years in scholarships to several universities with existing partnerships with LCU’s GoBeyond Foundation. An additional $1 million over ten years will benefit a food bank the GoBeyond Foundation partnered with. Finally, an additional $1.5 million will support affordable housing.”
•  More Branch Locations (97) and access to 30,000 fee-free ATMs nationwide. All Launch CU branches will remain open. 
• Expanded Products & Services. 
• Increased Innovation. “Greater capacity to invest in new products, services, and digital solutions over time, including significant capital contribution and innovation through the credit union’s CUSOs to enhance member experiences and create value for the member regarding insurance products (Member Insurance Center, title services (Members Title Agency, and Realtor service (Suncoast Realty Solutions).”
• Stronger Communities. “Greater investment in local outreach, financial education, and community support. For example, with every debit card swipe, three cents are donated to support education, health, emotional well-being of local children-contributions that total millions of dollars each year across Suncoast’s communities-along with ongoing efforts in Hispanic community outreach and expanded access to financial literacy and economic opportunity.”
• Long-Term Stability. 
• Volunteer Representation. “As of the effective date of the merger, the board of directors of the combined credit union shall initially consist of 12 board positions which shall be comprised of 11 board positions from the current SCU board of directors and one board position from the current board of directors of LCU.”  One LCU board member will also join the Supervisory Committee. In addition, Suncoast CU said it will o LCU board member Daniel Sicchio will be appointed to the Supervisory Committee of establish a Regional Advisory Board of up to seven positions from LCU’s current board, and one LCU board member will be appointed to the board of SCU’s subsidiary, Suncoast LaunchPoint Ventures LLC.
• Employee Commitment: There will be no job losses due to the merger.

Financial Performance

Launch CU had $2.078 million in net income at midyear, with net worth of 9.32%. Suncoast CU posted $90.3 million in net income with net worth of 10.12%. 

Special Dividend to be Paid

Launch Credit Union said it will pay a special dividend as part of the merger. As a result of

this one-time disbursement, a total of $15 million in dividends will be distributed according to a formula that will pay:

• Eligible Members with an open Savings Share Account will receive $10
• Eligible Members with an open Checking Share Account will receive $40.

“Once these amounts are paid, the remainder of the $15 million will be used to calculate an additional dividend based on the total amount of dividends paid to a member for deposits and interest each member has paid on their consumer loans, credit card accounts, or mortgage loans during 2025,” Launch CU said. “It is estimated that Eligible Members would receive a rebate of approximately 22.26% of the total of, dividend received and interest paid, in 2025 on such deposits and loans as a special dividend.”

Merger-Related Compensation

One person is to be paid merger-related compensation, including:

• CEO Gary LeVar who will retire and, as per the terms an existing long-term incentive plan, retention bonus agreement and change in control agreement, will receive $640,578. 
• The credit union said several people are eligible for relocation benefits should they relocate to Tampa. 

Member: ‘A Swallowing Up of Launch CU’

“It is apparent this is not a merger of equals, an MOE,” wrote one member. “Judging by the financials Suncoast is 10 times bigger. This merger will not see Co CEOs. Launch CEO to retire. & we will have Suncoast CEO. Why does Suncoast initially have 11 board members & Launch gets one? Why is the Special Meeting held AFTER the date ballots (votes) must be received? Launch members are already being asked to vote prior to any meeting. What do Launch members know of the philosophy or culture of the Fl. west coast location of Suncoast? East coast of Brevard County is a mill town. The mill being the space center. We all joined Launch credit union that supports loans & financial services to the people in our area as opposed to a bank. Our neighbors our co-worker’s benefit. Where does the 15mil Special Dividends money come from? Are our votes being bought for $10. for savings acct & $40. for checking? Even this distribution accounts for 22.26% Where does the remaining 77.74% go? This is not a merger it is a swallowing up of Launch.”

An ‘Optimal Fit’ is Pitched as Reason to Vote for Merger

Merging Credit Union: Martin County Co-op Credit Union, Loogootee, Ind.

Assets: $24.6 million

Members: 1,221

Year Founded: 1948

Date of Member Vote: Aug. 24

Acquiring Credit Union: Hoosier Hills CU, Bedford, Ind.

Assets: $937.5 million

Members: 39,794

Martin County Co-op provided a list of FAQs to members that more or less position the merger as a done deal. It said it will retain its office and staff and add new products and services, including e-services, and members will have more branches. 

“The board of directors has concluded that the proposed merger is desirable and in the best interests of members because of the optimal fit and similarities in culture and strategy, the long-term viability this option offers to the employees and the membership, and the availability of additional resources and enhanced capabilities, products, and services for the MCCCU membership,” the credit union told members. “MCCCU membership will benefit from a comprehensive suite of product offerings including debit cards, commercial and personal deposit and loan products, multiple locations, ATM access, and increased accessibility through technology all with the local service their membership should expect.”

Financial Performance

Martin County Cooperative CU had $211,084 in net income as of June 30, with net worth of 16.62%. Hoosier Hills FCU had $4.2 million in net income and had net worth of 9.79% as of the same date. 

Better Pricing, Economies, Member-First Philosophy are Cited

Merging Credit Union: Plains FCU, Plainview, Texas

Assets: $4 million

Members: 421

Year Founded: 1958

Date of Member Vote: Aug. 24

Acquiring Credit Union: Caprock FCU, Lamesa, Texas

Assets: $40.4 million

Members: 4,378

Plains FCU told members a merger will better pricing and services, additional products and enhanced convenience, and will also benefit from economies of scale. It will retain its “member-first philosophy,” it added.

Member Comment

One member filed a comment with NCUA: “I am personally very excited about the prospect of this merger. There will be several new services available to the membership. I understand that voting for change is sometimes difficult, but I believe that the new combined credit union will be financially stronger because the economy of scale. Many expenses will reduce compared to what both credit unions are now paying.”

Financial Performance

Plains FCU had $982 in net income for the first half of the year, with net worth of 14.5%. Caprock FCU reported $9,383 in net income and had net worth of 11.54% as of the same date. 

With a Million-Dollar Loss at Mid-Year, PACU Looks to Merge; Payout to Four Execs

Merging Credit Union: Piedmont Advantage CU, Winston-Salem, N.C.

Assets: $367.9 million

Members: 27,002

Year Founded: 1949

Date of Member Vote: Aug. 25

Acquiring Credit Union: Truliant FCU, Winston Salem, N.C.

Assets: $45.6 billion

Members: 328,760

“The board and management of both credit unions believe the proposed merger will benefit PACU membership by achieving operational cost savings under a larger credit union, ultimately enhancing member value,” Piedmont Advantage told members. “This merger brings together two strong, mission driven credit unions to better serve members in a changing financial services environment. By combining strengths, the continuing credit union can invest in technology, products, and services—while staying true to the credit union mission of people helping people. For PACU and Truliant members, this merger supports long term stability and positions the credit union to continue delivering competitive products, modern digital tools, and strong local service into the future.”

The message to members also listed benefits that include more branches; the addition of a PACU board member in a non-voting role on the Truliant board; and the same “friendly” employees. 

Financial Performance

Piedmont Advantage CU posted a $929.796 loss at mid-year, with net worth of 8.55%. Truliant FCU had $32.2 million in net income and net worth of 10.56% as of the same date. 

Merger-Related Compensation

Four members of the Piedmont Advantage management team are to be paid merger-related compensation, including:

• Dion Williams, president and CEO, who is to receive two years of salary as severance under his existing executive employment agreement, totaling $726,016.20.
• Jeanette Stark, EVP, chief legal officer and general counsel, who will be eligible for a retention bonus of up to $185,454 to be paid in equal increments should she remain employed with the combined CU as of Sept. 1, 2026, Jan. 1, 2027, and March 30, 2027, respectively.
• Robert Payne, chief technology officer, who will be eligible for a retention bonus of up to $115,688 to be paid in equal increments should he remain employed with the combined credit union as of Sept. 1, 2026, Jan. 1, 2027, and March 30, 2027, respectively.
• Kimberly Adkins, SVP-marketing and growth strategy, who will be eligible for a retention bonus of up to $103,198 to be paid in equal increments should she remain employed with the combined CU as of Sept. 1, 2026, Jan. 1, 2027, and March 30, 2027, respectively.

Member Files Comment

One member filed a comment with NCUA, saying that as a “member-owner of Piedmont Advantage Credit Union (PACU)” she wanted to “formally register my strong objection to the proposed merger with Truliant Federal Credit Union. I have already cast my ballot to vote “Do Not Approve” regarding this proposal.

“Piedmont Advantage Credit Union holds a significant, irreplaceable value to me and my
family. My mother…worked as a reservation agent for PiedmontAirlines, the very company-that founded this credit union in 1949 to serve its workers.
Keeping my money at PACU is a deeply meaningful way for me to honor her legacy and
support an independent institution built on those historic local roots.

“Additionally, as an autistic individual, routine, predictability, and familiarity are incredibly
important to my daily life and mental well-being. I have established a comfortable,
reliable routine with PACU. I know exactly how to navigate their services, and the staff
understands my needs.

“Forcing a merger means forcing me through an overwhelming transition. I would have to
navigate entirely new banking systems, different mobile apps, unfamiliar branch layouts,
and new staff. If the merger goes through, the disruption to my established routine will
force me to leave and look for another financial institution entirely, which causes further
unnecessary stress and anxiety.

“A merger with a much larger institution like Truliant completely dismantles the unique
culture, historical identity, and personalized, accessible service that PACU provides. I
urge the NCUA to thoroughly review the negative impact this merger will have on
members who rely on PACU for its community heritage, stability, and accessible
environment.”

Ability to Better Fight Cyberattacks, More Products are Named as Reasons to Merge; Member Has Questions

Merging Credit Union: Water’s Edge FCU, Biloxi, Miss.

Assets: $5 million      

Members: 600

Year Founded: 1953

Date of Member Vote: Aug. 25

Acquiring Credit Union: CenturyFirst FCU, Hattiesburg, Miss.

Assets: $144.8 million

Members: 16,069

Water’s Edge FCU told members the merger is in their best interests because it “would need to grow its membership, add additional products and services, gain economies of scale and differentiate itself to be able to compete with larger financial service companies in an increasingly crowded marketplace for financial services. The Board of Directors of Waters Edge Federal Credit Union understands the threat of cyber hackers that occur daily and feels that a merger with a larger credit union will provide the much-needed security for members’ financial data as well as personal data. A larger credit union will have more resources to afford the data protection that members expect.”

It also cited additional products, services, locations and ATMs as benefits, as well as financial counseling and “long-term stability.” It added that employees will see enhanced benefits, as well. 

Member Has Questions

“What will happen with the existing board of Water’s Edge CU? How will the current members of WECU be protected from future adverse management decisions by CFCU? An example would be choosing to close the Biloxi office. Has CFCU experienced a data breach in the past 5 years? How many members do WECU and CFCU have? If WECU is not distributing to the members a portion of net worth, what will be the use of those funds, and the benefits to the WECU members?”

Financial Performance

Water’s Edge FCU had a loss of $1,144 at midyear, with net worth of 7.16%. CenturyFirst FCU had $633,160 in net income and net worth of 13.86% as of June 30. 

The Commodores See Hope in a New Port

Merging Credit Union: Vanderbilt Credit Union, Nashville, Tenn.

Assets: $53.2 million

Members: 5.391

Year Founded: 1993

Date of Member Vote: Sept. 2

Acquiring Credit Union: Fortera FCU, Clarksville, Tenn.

Assets: $946.7 million

Members: 84,582

“The board of directors of Vanderbilt CU have chosen to merge with Fortera FCU to ensure that the credit union can continue delivering the high level of service our members expect, while expanding access to modern banking tools, specialized products, and additional service locations,” VCU said in its message to members. “This partnership allows us to build on our strong foundation while gaining the scale and resources needed to serve the Vanderbilt community well into the future. Members can expect uninterrupted service, expanded capabilities, and the same commitment to personal, member-focused banking that has always defined the Vanderbilt Credit Union.”

Financial Performance

Vanderbilt Credit Union had net income of $56,537 as of June 30, with net worth of 9.79%. Fortera FCU had $6.94 million in net income and net worth of 12.69%.