CORNELIA, Ga.–Four more credit unions in four states said they plan to put merger proposals in front of their members in upcoming votes.
The merger plans were filed with NCUA, which requires credit unions to disclose to members why there are looking to combine and whether there will be any payout of capital to members or merger-related compensation paid to members of management.
A CUToday.info reviews of the filings of those merger applications shows:
Merger in Georgia
Fieldale Credit Union, chartered in 1979 and which has $9.87 million in assets and 1,602 members, is seeking to merge into the $20.24 million North Main Credit Union, which has approximately 1,692 members. Both CUs are located in Cornelia, Ga.
At Sept. 30 Fieldale CU reported $2.424 in net income and 13.43% in net worth. North Main Credit Union reported $164,098 in net income and 13.39% in net worth.
In its disclosure form filed with NCUA, Fieldale said it “would not have sufficient resources to expand offerings and operate independently.” It cited the additional offerings available through North Main CU. Indicative of its asset size, Fieldale lacks a website.
Fieldale said it does not plan to distribute its net worth, as it has a “similar” ratio to that of North Main, and said no member of management or the board will receive any merger-related financial compensation.
A vote by members of Fieldale Credit Union is scheduled for Jan. 13.
Smaller CU Absorbing Larger CU
In Maine, the $96-million Lincoln Maine FCU, which has approximately 6,000 members, said it is seeking to merge into the smaller, $72.3 million EastMill FCU in East Millinocket, which has approximately 4,000 members.
EastMill FCU reported net income of $92,519 as of Sept. 30, with capital of 18.04%. Lincoln Maine reported net income of $1.055 million, with capital at 11.31%.
A member vote in a virtual format has been set for Dec. 30.
In its statement to members, Lincoln Maine said the reasons for the merger are economies of scale, opportunities to increase services and lower service delivery costs, an increase in the number of available service locations comma and an increase in management efficiencies an operations period.
The credit union said it does not plan any merger-related capital distribution, since it “does not have a higher net worth ratio than EastMill FCU.”
In addition, Lincoln Maine said there would be no merger-related compensation paid to management or board members.
In Florida, CU Cites All the ‘Costs’
In Florida, the $36.5-million Maitland-based Gulf States CU, which has approximately 3,000 members, said it is seeking to merge into the $847.3-million, Orlando-based McCoy FCU, which has approximately 71,361 members. A vote has been set for Dec. 28.
Gulf States CU reported net income of $16,675 and net worth of 13.47% as of Sept. 30, while McCoy FCU reported $6.7-million in net income with capital of 8.56%.
Gulf States said it is seeking to merge because “of increased costs associated with compliance and regulatory functions, declining membership, costs of new technology comma increasing employee wages and benefits and the difficulties in competing with larger financial institutions.”
Gulf States said there are no plans for any distribution of capital, but that one person identified as “VP/controller,” who will be retiring, will be paid $37,695 in conjunction with the merger.
CUs Founded to Serve Buddhists to Merge
Finally, in Colorado, Boulder-based Shambhala Credit Union, which has $2.1 million in assets and 314 members, is looking to merge into the $1.54-billion Premier Members Credit Union, which has approximately 77,000 members and is also based in Boulder.
Shambhala was founded to serve Boulder’s Buddhist community. It was profiled in CUToday.info in 2016 when it reported it had seen just two loan defaults in 40 years.
Shambhala CU reported a loss of $6.132 at Sept. 30, with capital of 9.22%. Premier Members reported $6.1 million in net income and capital of 9.40%.
Members are to vote on the merger Dec. 28.
Shambhala CU said it is seeking to merge to provide its members with an expanded branch network as well as expanded product/service offerings, including online and mobile banking.
Shambhala said it will not be distributing any capital to members nor will any members of management receive any merger-related payouts.