Montana Members Approve Merger With Washington Credit Union

Members of the $137 million Embark Federal Credit Union in Great Falls, Mont., voted to approve a merger with the $1.7 billion Horizon Credit Union, the Spokane Valley, Wash.-based financial cooperative said in a prepared statement Tuesday.

Horizon did not disclose the final vote tally. The credit union did not respond by deadline on Tuesday afternoon to CU Times‘ request for the member vote count.

“With the positive vote, we are pleased to officially join our two organizations together in late July,” Embark President/CEO Deb Evans said in the prepared statement. “Together as one, Embark members will enjoy more products and services, additional technology, expertise in cybersecurity and more convenience.”

Evans, who has served as Embark’s CEO since August 2006, will receive a post-merger salary of $168,000 and a $100,000 bonus, which will be split 50-50 between the credit unions, according to Embark’s merger disclosure documents filed with the NCUA.

The bonus was approved by Embark’s board of directors.

Evans will receive $50,000 of the bonus prior to the merger’s completion and an additional $50,000 will be paid to Evans by Horizon in 2023, the merger disclosure documents showed.

Embark’s vice president and assistant vice presidents will receive a retention payment of $10,000 to $15,000, 60 days following the data conversion date, while employees in “key contributor positions,” determined by agreement between Embark and Horizon, will get retention payments of $2,500 to $5,000, and all other employees will get a retention payment of $1,500, according to the merger disclosure documents.

Embark has 28 full-time employees and three part-time employees, according to its first quarter Call Report. The credit union’s two branches will remain open.

Embark said it decided to merge with a credit union not based in Montana because Horizon has been serving the state since 2012, with branches in Missoula, Butte and another soon-to-open branch in Bozeman. Horizon also can serve 14 counties in Montana.

“With our (Embark’s) Great Falls locations, our members will gain five additional branches in Western Montana as well as top-of-the-line technology for digital service,” Embark said on its website. “Horizon Credit Union recognizes the value of our market, understands our combined strength of culture, values, financial strengths and maintains a strong commitment to members. This was critical for our Board of Directors.”

Evans will continue to lead the local market in the new organization and will sit on the Embark advisory board, which will exist for 18 months after the merger to ensure that the consolidation proceeds as planned in the legal agreement. Embark will not be represented on Horizon’s board of directors.

Embark was chartered in 1936 and served 9,870 members.

Horizon President/CEO Jeffry Adams will retain his position of the combined organization.