Merger Approval Creates Louisiana’s New Billion Dollar Credit Union

Seventy-two percent of more than 1,930 Louisiana Federal Credit Union members voted in favor of merging with OnPath Federal Credit Union, which will create the fourth largest financial cooperative in the Pelican State that will manage more than $1 billion in assets and serve 90,100 members.

“This is the largest credit union merger that has occurred in the state of Louisiana,” according to a joint prepared statement the credit unions released Wednesday. “The partnership is rooted in shared values and a strong commitment to their members.”

While initially Louisiana FCU will retain its name and operate as a division of OnPath FCU, the combined organization will ultimately adopt the OnPath name after which a new brand will be introduced later that will honor and capture the spirit of both credit unions’ rich histories.

The combined credit union’s 274 employees will operate 15 branches throughout the greater New Orleans area.

“First and foremost I want to thank our board of directors, employees, and our members for their commitment to Louisiana FCU,” Louisiana FCU President/CEO Rhonda Hotard said. “We are very excited that our members voted in favor of merging with OnPath. We look forward to continuing to grow together for the benefit of our members and the communities we serve.”

According to Louisiana FCU’s merger related financial arrangements filed with the NCUA, Hotard will receive $460,000 in post-retirement supplemental health insurance and the credit union’s Chief Financial Officer Melissa Matherne will receive $300,000 in post-retirement supplemental health insurance. These employees negotiated for supplemental health care coverage upon retirement, and ending at age 65, according to the credit union.

“I want to officially welcome Louisiana FCU members and employees to OnPath. Through this merger, Louisiana FCU members will gain access to additional branches conveniently located in the New Orleans area,” OnPath President/CEO Jared Freeman said. “Additionally, this merger will help our already strong, healthy credit unions to be in an even better position to serve our members and future members now and into the future.”