Bucks County credit union members reject proposal for merger.

Members of Spirit Financial Credit Union, a 71-year-old institution based in Levittown, Bucks County, recently voted against a proposed merger with Credit Union 1, a significantly larger lender based in suburban Chicago. The decision reflects a strong member sentiment and a commitment to maintaining local control over financial operations.

The proposed merger sought to combine Spirit Financial, which has assets totaling approximately million, with Credit Union 1, which boasts assets of around billion. The leadership of Spirit Financial expressed respect for the outcome of the vote, as articulated by CEO David Obarowski. He acknowledged the participation of members in the voting process and affirmed that Spirit Financial will continue to operate independently without plans for a re-vote on the merger proposal.

In the wake of the voting results, Todd Gunderson, the CEO of Credit Union 1, also recognized the importance of the member-driven decision. He highlighted that the majority of votes were cast by mail, with a smaller group participating in person during a recent meeting. Gunderson characterized the members as “constructive” and expressed appreciation for their engagement, noting a need to attract a younger demographic to ensure long-term sustainability.

While the specific voter turnout statistics were not disclosed by either credit union, Richard Kilian, a member and building-materials company owner who opposed the merger, reported that over 500 of the credit union’s 3,800 members participated in the vote, with more than 400 members voting against the merger.

This outcome marks a notable setback for Credit Union 1, which has successfully navigated numerous merger initiatives since Gunderson assumed leadership in 2020, achieving approval in 12 out of 13 merger votes during that time. The proposed merger was presented as a means to enhance service offerings, such as increasing loan and deposit products and reducing ATM fees, but these benefits are no longer featured on the websites of either financial institution following the member vote.

The roots of Spirit Financial can be traced back to the workers of the former U.S. Steel Fairless Works, and today, it remains dedicated to serving individuals who live or work in Bucks County. Kilian emphasized the need for Spirit Financial to recruit younger customers and staff, leverage social media for outreach, and engage meaningfully with the community to ensure its ongoing viability.

As credit unions continue to evolve in a competitive financial landscape, the recent decision underscores the importance of member engagement and the preference for local governance in financial institutions. The outcome invites scrutiny over the future strategies Spirit Financial will pursue to attract a broader membership base while maintaining its legacy and community ties.

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