CVFCU is well capitalized with a net worth of 9.11%, but like many small-asset credit unions, it has experienced challenges with declining membership, loan production, and total shares and deposits.

Its membership fell from 9,264 in 2020 to 6,974 in 2024, according to NCUA Call Reports. At the end of this year’s first quarter, CVFCU’s membership dropped to 6,778.

Although the credit union’s loans grew from $79.5 million in 2021 to $88.2 million in 2022, loans dropped to $81.7 million in 2023 and again to $74.4 million in 2024, according to NCUA financial performance reports. At the end of this year’s Q1, the credit union’s loans totaled $72.2 million compared to $79.1 million at the end of Q1 2024.

While total shares and deposits increased from $109.9 million in 2020 to $123.8 million in 2021 and held steady at $123 million 2022, they fell to $112.5 million in 2023 and $108.3 million in 2024, according to NCUA financial performance reports. At the end of this year’s Q1, total shares and deposits totaled $111.4 million compared to $114.2 million at the end of Q1 in 2024.

The CVFCU’s net worth of $10.2 million will be transferred to CFCU.

In its merger documents filed with the NCUA, CVFCU stated its board and the CFCU board wanted to recognize and reward CVFCU President/CEO Peter Bagazinski for his nearly 25 years of service and work related to the consolidation.

That reward will include a $10,000 salary increase on the merger date and a one-time $50,000 bonus when the merger’s conversion is completed. In addition, Bagazinski will receive a deferred compensation arrangement, which will be funded over five years at $50,000 annually.

In 2024, his total compensation was $256,032, according to the credit union’s 2024 IRS 990 filing.

Bagazinski will join CFCU as its chief business development and advocacy officer.

Peter Strozniak can be reached at [email protected].