Credit Unions
In a Brookings Institution conversation, former NCUA Chair Todd Harper said suing President Trump over his firing was a difficult decision but necessary. He described learning of his dismissal indirectly and receiving the termination email at the wrong address. Harper views the firings of NCUA and other agency board members as part of a broader strategy to target the Federal Reserve and dismantle regulatory independence. He warned that without a quorum, the NCUA board cannot implement policy changes or approve enforcement actions, and that downsizing could impair oversight of high-risk credit unions. Harper also noted weakening support for the credit union tax exemption on Capitol Hill.
The NCUA liquidated Unilever Federal Credit Union, based in Englewood Cliffs, New Jersey, on Wednesday and declared it insolvent. The credit union reported losses of $134,891 at the end of 2023 and $336,490 at the end of last year. The NCUA also issued two consent orders prohibiting two employees from participating in the affairs of any federally insured depository institution. This is the first liquidation by the NCUA in 2025. The decision comes about two weeks after President Donald Trump fired two Democratic NCUA board members, leaving Republican Chair Kyle Hauptman as the sole board member. The credit union had $46.6 million in assets and served about 1,450 members, primarily employees of Unilever's U.S. operations. Each member's account is insured up to $250,000, and creditors must submit claims by Aug. 28.
Safe Harbor Financial's new CEO Terry Mendez is prioritizing marketing and sales to grow the company's customer base and financial institution network. The fintech, which provides banking services to the cannabis industry, aims to increase its partner financial institutions from about six to 20-25 in three years. After cost-cutting measures, including reducing staff and pausing some services, Mendez is now focused on growth, despite the company's $48.3 million loss last year and going concern doubts. Safe Harbor recently hired marketing and business development leaders and formed referral partnerships with Würk and FundCanna.
Two former National Credit Union Administration (NCUA) board members, Todd Harper and Tanya Otsuka, have sued President Donald Trump and other government officials over their recent firings. The lawsuit, filed Monday, claims the removals were 'patently unlawful' and violate the Federal Credit Union Act, which requires a three-member board with no more than two from the same political party. The firings leave only Chair Kyle Hauptman on the board, preventing formal meetings or new rules due to lack of quorum. Harper and Otsuka argue the move undermines the NCUA's independence and could lead to consolidated regulation of credit unions and banks. The NCUA insures deposits for over 4,000 credit unions, safeguarding $2 trillion in assets for 142 million Americans. Senators Elizabeth Warren and Maxine Waters have also requested analysis from the NCUA Inspector General on how a one-member board can operate. The firings are part of a broader pattern of Trump removing Biden-era appointees at other independent agencies.
MidFlorida Credit Union, based in Lakeland, Florida, has announced its acquisition of Tallahassee-based Prime Meridian Bank. The deal will create a combined entity with $9.5 billion in assets, $7.2 billion in loans, and 66 branches. Prime Meridian shareholders will receive $58.50 per share, subject to adjustment. The transaction, expected to close in 2026, marks the fifth whole-bank acquisition by a credit union this year. MidFlorida gains four locations, including three in the Big Bend area, giving it a physical presence in the Panhandle for the first time. All Prime Meridian employees will be retained. The acquisition has drawn criticism from the Independent Community Bankers of America, which argues against credit union tax exemptions, while America's Credit Unions defends credit union competition.
Salem, Oregon-based Maps Credit Union will acquire Oregon City-based Lewis & Clark Bank, the institutions announced Monday. The deal, set to close in Q1 2026, is expected to create a $1.7 billion-asset institution with 13 branches. Maps does not anticipate branch closures and will retain all Lewis & Clark employees. The acquisition expands Maps' footprint to Seaside and Astoria. Lewis & Clark had $392.1 million in assets as of Dec. 31, 2023. This is the fourth proposed bank acquisition by a credit union this year, down from a record 22 in 2024. The deal has sparked tension between bank and credit union trade groups over the credit union tax exemption.
Jim Nussle, CEO of America’s Credit Unions, announced his retirement on Friday after more than a decade in the credit union movement. He did not specify a retirement date, giving the board flexibility to conduct a thorough search for the next CEO. Vice Chair Karen Harbin, CEO of Commonwealth Credit Union, will lead the search committee, assisted by Korn Ferry. Nussle was instrumental in forming America’s Credit Unions in 2024 through the merger of CUNA and NAFCU. Board chair Pat Pierce praised Nussle’s leadership and expressed confidence in finding strong candidates. Nussle reflected on his 40-year career in advocacy, public service, business, and law, including eight terms in the House of Representatives and directorship of the Office of Management and Budget.
Birmingham, Alabama-based Legacy Community Federal Credit Union has agreed to acquire First Community Bank of Cullman in an all-cash transaction, the credit union announced Tuesday. Financial terms were not disclosed. The deal, expected to close this year, will expand Legacy beyond the greater Birmingham area into Cullman County. The acquisition is the third proposed bank-credit union deal this year, far fewer than the record 22 announced in 2024. Trade groups continue to debate the tax-exempt status of credit unions, with the ICBA calling for an end to the federal tax exemption for credit unions with $1 billion or more in assets. Legacy, with $644 million in assets and nine branches, serves about 39,000 members in central Alabama. First Community had $104 million in assets as of Dec. 31.
Joliet, Illinois-based NuMark Credit Union has agreed to acquire The Lemont National Bank in an all-cash deal, expected to close in the second half of 2025. The acquisition will give NuMark approximately $910 million in assets and 15 branches. Terms were not disclosed. This is NuMark's second acquisition, following its 2023 purchase of Pioneer State Bank. Lemont entered a consent order with the OCC in April 2024 over unsafe or unsound practices. The deal awaits shareholder and regulatory approvals. Credit union bank acquisitions reached a record 22 in 2024, though only two have been announced so far in 2025. Trade groups like ICBA oppose such deals, citing credit unions' tax-exempt status.
Allyson Hill, CFO of $20 billion-asset Golden 1 Credit Union, says finding candidates with the right culture fit is as important as financial skills. She highlights the credit union's member-focused mission, the need for critical insight, and the importance of collaboration and independent decision-making. Hill also discusses preparing for technological shifts, including AI, and the value of diversification and flexibility learned from past recessions.