LEVITTOWN, Pa.—In an outcome uncommon in the credit-union industry, members of Spirit Financial CU have voted down management’s proposal to merge with a much larger out-of-state institution, rejecting a deal that would have folded the $70-million cooperative into $2-billion Credit Union 1 of suburban Chicago.
The vote and related details were reported by the Philadelphia Inquirer.
Spirit Financial CEO David Obarowski said the 3,800-member credit union will remain independent following the defeat of the proposal.
“We respect the decision our members made through this vote,” Obarowski said in a statement, adding that there are no plans to bring the same merger back for another vote. He thanked members for participating and providing feedback, according to the Inquirer.
Credit Union 1 CEO Todd Gunderson also acknowledged the outcome, expressing respect for what he described as a democratic process. Gunderson said most ballots were cast by mail, with a smaller number of members attending the meeting in person, where they questioned both leadership teams. He characterized the discussion as constructive and said members focused heavily on the challenge of attracting younger members, the Inquirer reported.
Neither credit union disclosed official turnout figures. However, Spirit member Richard Kilian, who opposed the merger, told the Inquirer that more than 500 members voted, with over 400 casting ballots against the deal based on results announced at the meeting.
The vote marked a rare setback for Credit Union 1, which has built a multistate footprint through mergers and now holds more assets than many community banks. Gunderson told the Inquirer the credit union had secured approval in 12 of 13 merger votes since he became CEO in 2020.
Information promoting the proposed merger—such as expanded product offerings and reduced ATM fees—has since been removed from both institutions’ websites, the Inquirer noted.
Kilian attributed the outcome largely to members’ desire to retain local control, even as he acknowledged Spirit Financial’s need to refresh its aging membership base. Founded 71 years ago by workers at the former U.S. Steel Fairless Works, Spirit Financial now serves people who live or work in Bucks County, as well as members of Bucks-based churches and organizations.
Looking ahead, Kilian told the Inquirer he hopes Spirit Financial will focus on recruiting younger members and leaders, expanding community engagement through social media, and adding staff with lending expertise to support growth while remaining independent.