Minnesota Merger Would Make the Newest $1 Billion Credit Union

A billion-dollar credit union merger is in the making in Minnesota.

A special membership meeting of the $284 million Anoka Hennepin Credit Union in Coon Rapids, Minn., will be held in June to decide whether to consolidate with the $836 million Topline Financial Credit Union in Maple Grove.

If approved by members, the combined credit union would manage more than $1.1 billion in assets with 180 employees, 11 branches and nearly 70,000 members in 15 counties across the metro and northern suburbs of Minneapolis and St. Paul.

The proposed consolidation has received preliminary approvals from the NCUA and Minnesota’s Department of Commerce.

Under the merger agreement, Anoka Hennepin Credit Union would continue to operate as a division of TopLine Financial Credit Union for one year from the effective July 1 merger date. After that, Anoka Hennepin would roll into the TopLine Financial Credit Union brand.

Jeff Claussen would continue to serve as Anoka Hennepin’s president/CEO until his retirement. After that time, Mick Olson would continue to serve as president/CEO Topline Financial.

Under the merger-related financial arrangements that Anoka Hennepin filed with the NCUA, Claussen would be guaranteed 18 months’ salary (which is the equivalent of $427,250) and benefits after the effective date of the merger to be paid over time as well as benefits commensurate with his current employment contract. He also would retain a vehicle currently being provided by the credit union for his personal use.

In 2022, Claussen’s total compensation amounted to $354,434, according to the credit union’s IRS 990 filing. Total compensation included base wage ($262,859), bonus and incentive compensation ($33,918), other reportable compensation ($5,411), retirement and deferred compensation ($21,604), and nontaxable benefits ($30,642).

Anoka Hennepin Chief Information Officer Rick Gonnerman, CFO Martin Waligora and General Counsel Theresa Tostengard would each receive a $75,000 retention bonus while Vice President of Lending Chris Olsen would receive a retention bonus of $35,000, the merger-related financial arrangements showed.

According to the 2022 IRS 990 filing, Gonnerman received total compensation of $234,271, Waligora, $199,700, Tostengard, $193,136 and Olsen, $169,983.

What’s more, Anoka Hennepin manages a self-insured short term disability “Extended Sick Leave” (ESL) policy, which permits employees who have met certain criteria to “cash out” their ESL benefit upon voluntary or involuntary termination or retirement. Topline Financial will have a third-party short-term disability program that will cancel the Anoka Hennepin ESL upon consummation of the proposed merger. As a result, there are nine employees who would be paid out per the Anoka Hennepin ESL policy, four of which the NCUA requires to be disclosed – Jeff Claussen ($23,042), Theresa Tostengard ($17,669), Martin Waligora ($14,623) and Rick Gonnerman ($14,134).

“By combining our resources and financial strength, Anoka Hennepin members will come to experience more value, such as access to additional products and services, like mortgage and small business services, along with an expanded branch network,” Claussen said in a prepared statement. “Our common focus on member advocacy, preserving a strong member-focused culture and passion to help more consumers achieve their financial dreams will continue to be a key driver.”

Culturally, Anoka Hennepin and TopLine share similar membership histories comprised of serving employees of the education and telecommunications sectors, with both being state-chartered credit unions that focus on financial inclusion and access, Olson noted.

“Our shared vision and passion of helping members financially succeed and supporting the betterment of communities will remain a core commitment, driven by our comparable values and purpose of supporting financial well-being for all,” he said in a prepared statement.