Whitesville Community Credit Union’s rapid merger with a struggling Owensboro institution reflects both regional growth ambitions and the mounting pressures on the smallest lenders.

Whitesville Community Credit Union, a $33.2 million cooperative based in the Daviess County town of Whitesville, Kentucky, is extending its footprint into nearby Owensboro through a merger with the much smaller Modern Employees Federal Credit Union, a move that underscores the accelerating consolidation among the nation’s smallest financial institutions.

The merger, completed legally on Dec. 31, 2025, will turn Modern Employees’ Owensboro office into a full branch of Whitesville Community Credit Union by the end of March. Discussions began only months earlier, in mid-2025, after Modern Employees’ chief executive stepped down without a successor, leaving the $5.5 million credit union with 511 members searching for a viable path forward.

“This happened very quickly,” Kim Greer, the president and chief executive of Whitesville Community Credit Union, told The Owensboro Times. “Mergers typically take 12 to 18 months. We’re completing this one in about seven.”

The speed reflected the differing financial trajectories of the two institutions. Whitesville Community Credit Union, founded in 1962 as St. Mary’s Credit Union, earned $390,000 in the first three quarters of 2025, nearly double its earnings from the same period a year earlier, according to National Credit Union Administration data. It now serves 2,315 members across western Kentucky.

Modern Employees Federal Credit Union, by contrast, lost $534,000 in 2025 after posting a modest profit in 2024, a downturn that likely made independence increasingly difficult.

Once operationally complete, the merger will bring expanded services to Owensboro. Members of Modern Employees will gain access to mobile banking, online bill pay, electronic statements, and broader loan and credit options. Employees will also see changes, including health insurance, a 401(k) with a 6% match, and what Greer described as opportunities for advancement.

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“Our goal is to grow and offer more to our members,” Greer said in the news story. “Modern’s members will gain access to better technology, more services, and stronger support.”

The physical space will change as well. Greer said the Owensboro building will be fully renovated. “The building is outdated. We plan to completely remodel it to create a modern, welcoming space,” she said.

For Whitesville, the expansion aligns with how members live and work. “A lot of our members work in Owensboro,” Greer said. “Now they’ll be able to take care of their banking while they’re in town for work.”

The merger was approved overwhelmingly by members, with 84 votes in favor and four opposed. It also fits a broader national pattern. As of the third quarter of 2025, the number of federally insured credit unions with less than $10 million in assets fell to 820, down from 886 a year earlier, according to the NCUA. Those institutions reported declining loans, membership, and net worth.

Whitesville Community Credit Union now serves the seven-county Green River Area Development District and could eventually expand into the neighboring Barren River region. Greer told the local news outlet that the credit union’s niche offerings, particularly mobile home lending, help distinguish it. “Even local banks call us about mobile home loans,” she said. “It’s something we’re known for, along with great car loan rates and strong customer service.”

In a strained environment for small lenders, the merger offers a glimpse of how survival and growth are increasingly intertwined.