MADISON, Wis.–Mergers have been announced in four states.
In Madison, Wis., the $393-million Heartland Credit Union and the $213-million Dane County Credit Union said they are seeking to combine. The joint credit union would have approximately 37,000 members.
"While this change is strongly recommended by your board of directors and management, a decision to combine the two credit unions is dependent upon you, the members of Dane County Credit Union," DCCU Chair Jeff Heil said in a statement. "Members will cast their votes in an upcoming election. In addition, you are invited to a special meeting where members will have an opportunity to meet the leaders of both credit unions and discuss the partnership."
Heartland Credit Union, founded in 1936, reported $2.072-million in net income and net worth of 9.44% as of Sept. 30. Dane County CU, founded in 1935, reported $779,774 in net income and net worth of 7.48% as of the same date.
In the statement, Heil said the merger will result in "added benefits" for Dane County Credit Union members.
"Together, our combined resources will allow for improved services, more convenience, greater access to cutting edge technologies that simplify banking, and more meaningful returns to the community," he said.
The credit unions have not yet filed disclosure statements with NCUA related to any plans for distribution of capital, payouts to management or board or other details.
New Jersey: ‘Can’t Keep Pace With Members’ Needs
In Phillipsburg, N.J., the $42-million Baker FCU said it will hold a meeting for members on Feb. 7 as it seeks to merge with the $992.5-million First Commonwealth FCU in Allentown, Penn.
In its disclosure form filed with NCUA, it listed as the reason for the merger, “Over recent years continuing challenges have impacted Baker federal credit union's ability to offer competitive and convenient services to meet members’ needs, including keeping pace with the ever-changing technology, expanding service hours/call centers, offering community literacy programs, being competitive with digital/remote services, and online financial education. Presented with these facts and an increasingly competitive landscape, the board of directors of Baker Federal Credit Union decided to explore merger opportunities with other credit unions.”
Baker FCU reported $360,431 in net income through Sept. 30 with net worth of 5.87%. First Commonwealth, which has approximately 70,000 members, reported $6.86-million in net income and net worth of 10.36% as of the same date.
The 4,000-member Baker FCU said it has no plans to pay out net worth to members, and that plans calling for paying BFCU CEO Susan A. Rodriguez a $24,000 retention bonus for remaining with the credit union through completion of the merger.
Illinois: Just Over the Horizon, A Merger
In Danville, Ill., the $15.9-million New Horizon Credit Union said it is seeking to merge into the $462-million University of Illinois Community Credit Union in Champaign.
In its disclosure forms filed with NCUA, the 1,500-member NHCU said the merger is desirable and in the best interests of members “because of challenges to growth, earnings, scalability, and member service limitations. Maintaining sufficient earnings has been a particular challenge in recent years period low interest rates, contributing to low gross earnings, have resulted in an impact to earnings and shrinking capital levels. Startup costs and technology requirements make providing additional services very difficult at this time. Membership growth has also been very challenging for a number of years due to minimal hiring at our primary employee group.”
If the merger is approved by members, New Horizon, chartered in 1946, said plans call for it to be completed by April 30, 2022.
New Horizon CU reported $96,823 in net income and net worth of 10.16%. UICCU reported $2.54-million in net income and net worth of 8.20% as of the same date.
New Horizon said it does not plan to distribute any of its net worth to members, nor will there be any merger-related compensation paid out to any of its employees or board.
A member vote is scheduled for Feb. 5.
In Ohio, #30 for a Newspaper CU
In Parma, Ohio, the $18.87-million Plain Dealer FCU said it is looking to merge into Hilliard-based Ohio Credit Union, which has $194 million in assets.
In its disclosure documents filed with NCUA, PDFCU said its primary field of membership, the newspaper The Plain Dealer, has had many layoffs over the past few years. “As our major sponsor this has made it difficult to increase membership and loans. Merging with Credit Union of Ohio will allow us to remain at our current branch location, provide new offerings and expand our services to anyone in Cuyahoga County who will be eligible for membership.”
Plain Dealer FCU, chartered in 1957, reported a net loss of $53,689 and net worth of 15.01% as of Sept. 30. Credit Union of Ohio, chartered in 1966, reported $90,459 in net income and net worth of 9.61% as of the same date.
The credit union said there are no plans to distribute any net worth and indicated there will be no-merger related payments to management or board.