Member Votes Planned on 15 Proposed Mergers in Next 6 Weeks; A Look at Member Payouts, Exec Comp

ALEXANDRIA, Va.–There are 15 proposed credit union mergers scheduled for respective member votes during June and mid-July, according to NCUA.

The agency requires federally insured credit unions to list proposed mergers and to invite public feedback, as well as to disclose any compensation to be paid to board members or senior executives at the credit unions involved in the mergers. The listing of proposed mergers can be found here.

The Mergers Up for a Vote

Among the credit unions scheduled to merge are (with the member vote date in parenthesis):

• The $3.5-million Jeff Davis Teachers Credit Union in Louisiana into the $495-million CSE Credit Union (June 3). As the net worth of JDTCU is higher than that of CSE, JDTCU members are to be paid $10 per member if the merger is approved.
• The $24.4-million Burns & McDonnell CU in Missouri into the $4.2-billion CommunityAmerica CU (June 8). In its disclosure, BMCU said it will pay a $380,000 bonus dividend to members based on 2020 average daily balance for all deposit products. BMCU Manager Consuelo Brown and Consultant Kelly Stufflebean will be paid $10,000 each.
• The $184-million Solano First CU in California into the $2.4-billion Valley Strong CU (June 10). No payout to members is planned. Members of senior management who will receive additional compensation as a result of the merger include current SFCU CEO President/CEO Mike Warrell, who will be paid a maximum amount of $107,467.34 and will continue on with VSCU as market president with an increase in pay of $38,791.55. Michael Stremme, VP-Finance and CFO, has a maximum possible payout of $29,917.65 and will be employed on an at-will basis. Should Stremme terminate employment with 18 months of the merger date he will be eligible for the full payout. Susan Mays, SVP, with severance opportunity of up to $270,400; Valley Strong said it will continue to employ Mays under the current employment agreement and is eligible for severance if demoted below level of SVP and if she elects to terminate the employment or if VSCU terminates employment upon the merger. Christopher McGown, VP-marketing/facilities, with a maximum severance of $30,253, will be employed on an at-will basis and is eligible for the full payout if he terminates employment within 18 months of merger date. Steve Ferguson, AVP-lending, with a maximum severance opportunity of $34,164.08 and who will be employed as an at-will employee and will be eligible for the full payout if he terminates employment within 18 months of merger date.
• The $1.4-million CTA C AND M FCU into the $19.5-million 77^th Street Depot FCU in Illinois (June 15). No member payout or executive compensation will be paid as a result of the merger.
• The $19.5-million Mountain Gem CU into the $1.6-billion Potlatch No. 1 Financial CU in Idaho (June 15). No member payout or executive compensation will be paid as a result of the merger.
• The $195-million Coulee Dam FCU into the $4.3-billion Spokane Teachers CU (June 21). No member payout or executive compensation will be paid as a result of the merger.
• The $30-million CONE Credit Union into the $363-million Simplicity Credit Union in Wisconsin (June 21). No member payout or executive compensation will be paid as a result of the merger.
• The $1.5-million Coshocton FCU into CES Credit Union (June 21). No member payout is planned, but disclosure documents say CFCU Interim Manager Seandra McCoy will move from a $12,000 part-time position to a $40,000 full-time position, plus benefits.

Other Mergers Planned

• The $8.7-million S.A.I.F. FCU into the $641-million La Capitol Credit Union in Louisiana (June 24). No member payout or executive compensation will be paid as a result of the merger.
• The $4.8-million AE Goetze Employees CU into the $253-million First Alliance CU in Minnesota (June 28). No member payout or executive compensation will be paid as a result of the merger.
• The $4-million St. Thomas Employee Credit Union into the $22.4-million Catholic United Financial CU in Minnesota (June 29). No member payout or executive compensation will be paid as a result of the merger.
• The $15.1-million St. Vincent Hospital CU into the $685-million Central One CU in Massachusetts (June 30). No member payout is planned, but SVHCU CEO William George will receive a $120,000 change of control contract payment, while Manager Nancy Burbank will receive a $44,000 severance.
• The $15-million Third Coast FCU into the $429-million Coastlife CU in Texas (July 8). Third Coast CU said it will pay a special merger dividend of $539,000 if the merger is approved.
• The $5.1-million Norton Troy CU into the $342-million Hudson River Community CU (July 13). Norton Troy CU said it will pay out $200 to each member (for a total of $89,000) if the merger is approved.
• The $5.3-million Owosso WBC FCU into the $989-million Frankenmuth Credit Union in Michigan (July 15). No member payout or executive compensation will be paid as a result of the merger.