The members of Jeff Davis Teachers Federal Credit Union in Jennings, La., will vote in June on whether to merge into Lake Charles, La.-based CSE FCU.
Cynthia Neal, president and CEO of Jeff Davis Teachers FCU, plans to retire this year and the credit union’s board elected to seek out a merger partner because “no one is interested in taking the helm as CEO,” according to a regulatory filing.
Small credit unions frequently struggle to recruit successors when their CEOs retire and often enter into merger agreements as a result.
Jeff Davis Teachers holds just $3.5 million of assets and serves about 350 members. The deal will provide members with a wider branch network and many services the credit union does not currently offer, including online banking, checking accounts, credit and debit cards, mortgage services and more.
CSE FCU holds more than $468 million of assets and serves over 32,000 members.
All Jeff Davis Teachers members will receive a $10 dividend as part of the merger.
Call report data from the National Credit Union Administration shows Jeff Davis Teachers FCU posted a loss of nearly $52,000 during the first quarter of 2021, down from earnings of $1,456 during the first quarter of 2020. The decline was due in part to rising staffing costs, which rose from about $6,900 in the first quarter last year to $60,000 so far in 2021.
