DILLONVALE, Ohio–A review of 10 new merger disclosure forms filed with NCUA again finds CUs citing aging memberships, retiring leaders, and the inability to offer many services as reasons for seeking to combine. But the newest batch of CUs seeking to merge also shows a number posted year-end losses, and others planning merger-related payouts to both members and employees.
And in two cases, the saints have gone marching out.
Here is what CUToday.info’s review of the latest merger disclosure forms filed with NCUA reveal.
‘Aging & Declining Membership’
Merging CU: Dillonvale FCU, Dillonvale, Ohio
Assets: $1.6 million
Members: 289
Year Chartered: 1935
Date of Member Vote: April 12
Acquiring CU: Ohio Valley Community FCU, Clarington, Ohio
Assets: $212.5 million
Members: 14,029
Dillonvale CU’s board told members the merger is in their best interests because of an “aging and declining membership, managers’ retirement, and feel (sic) the continuing credit union will offer many new services.”
There are no plans for any distribution of DFCU’s 15.68% in capital, with the credit union saying the “excess net worth will be needed to cover expenses associated with the merger.”
Dillonvale FCU said its one office will close once the merger is completed, but that OVCFCU offers five offices.
DFCU closed 2022 with $8,960 in net income. Ohio Valley Community posted $2.463 million in net income, with capital of 10.31% as of Dec. 31.
CU Plans to Close But Remain in The Family
Merging CU: Davenport Police Department CU, Davenport, Iowa
Assets: $5.17 million
Members: 290
Year Chartered: 1934
Date of Member Vote: April 14
Acquiring CU: The Family CU, Davenport, Iowa
Assets: $238.8 million
Members: 20,215
In its statement to members, Davenport Police Department CU said the merger is desirable because The Family Credit Union is the only CU headquartered in Davenport; it offers five locations within six miles; it shares the same home banking and bill payment systems, and “very much like Davenport Police Department Credit Union, The Family Credit Union is a very healthy institution with a growing membership.”
DPDCU said it will distribute a portion of net worth to members if the merger is approved. Plans call for members to receive a 6% bonus dividend during April, based on the member’s month-end balance as of Sept. 30, 2022. All share and CD balances will be added together, the CU said.
Davenport Police posted $2,696 in net income for 2022, with net worth of 11.72%. The Family CU had $1.226 million in net income at year end, with net worth of 12.05%.
One Saint Joins With The Other Saints
Merging CU: St. Gabriels FCU, Washington, DC
Assets: $502,717
Members: 106
Year Chartered: 1967
Date of Member Vote: April 15
Acquiring CU: WSSC FCU, Laurel, Md.
Assets: $34.1 million
Members: 3,438
St. Gabriels FCU said it must merge because it can no longer attract a sufficient number of volunteers to continue to operate, and the merger would “transition our members to a full-service credit union that is managed by a full-time staff.”
In addition, St. Gabriels said the expectations of the types of services provided by credit unions have changed significantly,” and that the merger will allow it to expand its loan and deposit offerings. Moreover, WSSCU FCU is also a small community CU with a history of serving a faith-based community, the credit union told members.
St. Gabriels said there are no plans to distribute any net worth.
St. Gabriels posted a loss of $1,334 for 2022, with capital of 9.71%. WSSC FCU had $53,558 in net income and net worth of 9.71% at the end of 2022.
BCEFCU Cites Limited Services; Plans to Distribute Capital, Payouts to Execs
Merging CU: Bridgeport City Employees FCU, Bridgeport, Conn.
Assets: $30.935 million
Members: 3,865
Year Chartered: 1959
Date of Member Vote: April 19
Acquiring CU: Sikorsky Financial CU, Stratford, Conn.
Assets: $1.12 billion
Members: 58,352
In explaining to its members why it needs to combine with Sikorsky Financial, Bridgeport City EFCU said its small size and limited resource means it can offer only a limited number of services. The merger will provide members with seven additional branches, expanded surcharge-free ATMs, the ability to keep its current branch open, member access to electronic services, and a wider range of savings and loan products.
BCEFCU said it will distribute net worth to members, and is estimating between $2.8 million and $2.9 million will be distributed overall. Seventy-eight percent of that will be paid out as a dividend on share accounts, and 8% will be distribute din the form of a loan interest rebate, the credit union said.
A number of employees will also be receiving compensation as a result of the merger, according to the disclosure form filed by the credit union. Those include:
- President/Manager Carl Skudlarek: $116,942.42
- Assistant Manager Diane Christian: $61.157.18
- Accountant Sally Moran: $30,391.45
- Administrative Assistant/Loan Officer Kathleen Dorsey: $29,155.76
- Loan Processor/Officer Laurinda Crowley: $16,219.59.
Bridgeport City Employees reported $82,383 in net income in 2022, with capital of 23.61%. Sikorsky Financial had $11.65 million in net income last year, with capital at 10.82%.
Saints Go Marching…On
Merging CU: Saints Margaret and Gregory FCU, South Euclid, Ohio
Assets: $15.275 million
Members: 2,531
Year Chartered: 1944
Date of Member Vote: April 27
Acquiring CU: All Saints FCU, Parma, Ohio
Assets: $42.6 million
Members: 3,623
Saints Margaret and Gregory FCU’s board told members the merger should be approved in order to provide greater products and services than it can currently offer. While keeping its branch open, the merger will also add two more branches the CU said, adding a merger will provide the financial resources needed to “continue technological and product enhancements not otherwise offered.”
There will be no distribution of capital if the deal is OK’d, SMGFCU said.
Saints Margaret and Gregory FCU’s prayers were not answered in 2022, as it posted a $46,408 loss with capital of 9.03%. All Saints FCU posted $127,134 in net income with 14.09% capital as of year-end.
A Credit Union Loses Its Independence
Merging CU: Independence FCU, Independence, Mo.
Assets: $3.2 million
Members: 539
Year Chartered: 1963
Date of Member Vote: April 28
Acquiring CU: United Consumers CU, Independence, Mo.
Assets: $193.4 million
Members: 16,900
In explaining to its members why a merger is in their best interests, Independence FCU cited five reasons:
- More products and services, including mortgage-related offerings, credit cards and a rewards program
- Increased access via four branches and 5,000 ATMs
- Electronic access to accounts
- UCCU’s more experienced staff and “expertise in dealing with the increased regulatory requirements that have made compliance difficult due to limited staff and resources
- Independence FCU has experienced difficulty in recruiting and maintaining staff to support the credit union’s needs
IFCU said there will be no share distribution.
Independence Federal lost $7,775 in 2022, closing the year with a net worth ratio of 6.81%. United Consumers posted net income of $1.008 million, with capital of 10.68% as of the same date.
‘Modest Resources,’ But a Dividend Payout
Merging CU: Winchester FCU, Winchester, Mass.
Assets: $3.071 million
Members: 418
Year Chartered: 1957
Date of Member Vote: May 3
Acquiring CU: Members Plus FCU, Medford, Mass.
Assets: $338.2 million
Members: 13,006
“Winchester is, measured in financial terms, relatively small in comparison to competing financial institutions,” the credit union said in its message to members. “Winchester’s modest resources limits its ability to invest in the technology and other services members demand. Combining Winchester and MPCU will deliver to our members a broader array of better products and services such as enhanced online banking, mobile banking and a larger menu of loan products.”
WFCU said it will distribute a portion of its net worth if the merger is approved. Members with a positive balance as of July 31, 2022 will be paid an approximate 1.7% dividend. The total payout will not exceed $50,000 Winchester Federal said.
Winchester FCU reported a $43,457 loss at year-end 2022, with capital of 9.15%. Members Plus also finished in the red with a $1.028 million loss. It closed the year with capital at 13.78%.
Bewitched by Performance Problems
Merging CU: Greater Salem Employees FCU, Salem, Mass.
Assets: $16.9 million
Members: 1,268
Year Chartered: 1971
Date of Member Vote: May 10
Acquiring CU: St. Jean’s CU, Lynn, Mass.
Assets: $334.3 million
Members: 18,822
In a statement to members, Greater Salem Employees FCU, which is substantially below 7% capital standard, said, “It is the desire of the board to partner with a larger credit union to partner with a larger credit union to provide additional financial services to members.” It further said the two organizations have values that align.
There are no plans to distribute any capital.
GSEFCU reported a net loss of $119,463 at year-end, with capital at 4.66%. St. Jean’s had $1.86 million in net income, with net worth of 8.92% at year-end.
A Loss & A Gain of Self Reliance; Payouts to Execs
Merging CU: Self Reliance Baltimore FCU, Baltimore
Assets: $16.6 million
Members: 843
Year Chartered: 1955
Date of Member Vote: May 13
Acquiring CU: Ukrainian Selfreliance FCU, Feasterville Trevose, Penn.
Assets: $480.1 million
Members: 13,599
Self Reliance Baltimore said the merger will enhance products and services, create operational efficiencies, offer better pricing, improve member service, and increase member access. There will be no layoffs as the result of the merger, according to SRBFCU.
There will be no distribution of net worth, but a number of officials with Self Reliance Baltimore will receive merger-related compensation if the combination is approved, according to the disclosure forms. Those payouts include:
- CEO Ann P. Kerda, who will receive an amount equal to 50% of base salary earned during the transition period, not to exceed $27,279.
- Assistant Manager Maria Yavorivsky, who will receive an amount equal to 50% of base salary earned during the transition period, not to exceed $16,412.
- A member service rep, who is to receive an amount equal to 50% of hourly earnings during the transition period not to exceed $15,254.
Self Reliance Baltimore FCU had $68,664 in net income and net worth of 10.48% at year-end. Ukrainian Selfreliance FCU had $3.324 million in net income, with net worth of 9.62% as of the same date.
In the Green Mountain State, the Green Was Lacking
Merging CU: Vermont VA FCU, White River Junction, Vt.
Assets: $32.39 million
Members: 2,349
Year Chartered: 1939
Date of Member Vote: May 23
Acquiring CU: 802 Credit Union, Barre, Vt.
Assets: $375.5 million
Members: 34,413
Vermont VA FCU told members the merger would be to their benefit as it would improve the level of service, enhance products and services, strengthen the CU’s financial position, create operational efficiencies and add convenience.
Vermont VA FCU said there would be no distribution of net worth as the merger will result in the credit union being in a “strong financial position.”
VVAFCU said its CEO, Tom Crapo, will continue to be employed after the merger for three to six months until the merger is completed, after which he will have the option to work as a part-time BSA compliance specialist.
Vermont VA lost $229,894 in 2022, and closed the year with net worth of 6.90%. 802 FCU posted net income of $2.4 million, with net worth of 8.69%.
Additional Reporting
Additional reporting on mergers CUToday.info has provided in 2023 includes:
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