t’s an exciting time for Credit Union 1 (CU1). It’s already one of the largest credit unions in the state, and is the only state-chartered credit union in Alaska. Last year, CU1 announced its intent to merge with MAC Federal Credit Union (MAC). At the same time, CU1 is expanding its business account services and business lending options to better serve small businesses and entrepreneurs throughout the state.

The proposed merger promises to be a significant development in Alaska’s financial sector, as it will enhance how local communities access banking and business services. The merger process began last March and has progressed through careful planning, collaboration, and the shared vision of these member-owned institutions—both Alaska-grown credit unions founded in 1952. Now the merger is awaiting the blessing of state and federal regulators, according to CU1 President and CEO Mark Burgess.

“Once we get their approval, then we can announce to the members of MAC and CU1 that there will be a vote to approve the merger,” Burgess says. “We’re anticipating that vote will happen in the April to May timeframe.”

Both CU1 and MAC have longstanding traditions of focusing solely on serving Alaska and supporting local communities. CU1 was established as the Anchorage Teacher’s Credit Union and has undergone multiple mergers. MAC—which stands for Members and Community—originally began as Tanana Valley Federal Credit Union and later became Fort Wainwright Federal Credit Union to serve the military and employees at the US Army post. “Our scope has expanded to more than teachers and service members, but we’re still taking care of Alaskans,” Burgess says. “What’s kind of neat in combining organizations like this is we have that shared value of taking care of Alaska—we’ve been doing it for nearly seventy-five years—and now we just get to do it together.”

MAC’s mission has always been to prioritize the well-being of its members, says MAC Board of Directors Chair Jeremy Fillipi. This guiding principle ensures that major decisions—including the consideration of a merger—are approached with members’ best interests in mind. The decision to pursue a merger is rooted in the credit union’s commitment to “keeping members happy, keeping their money safe, and offering them more services,” he says.

The impending union of the two institutions is a strategic response to an evolving financial landscape. When MAC’s longtime CEO recently decided to step down, the organization found recruiting a new chief executive to be a challenge. It was also struggling with financial hurdles, including the difficulty of operating in an ever-evolving digital banking environment.

Ultimately, MAC’s leadership and board of directors decided that merging with a like-minded credit union would be the best option, so they reached out to CU1 for support. CU1 responded positively and committed to helping MAC move forward. “That’s what credit unions do all the time; that’s a credit union model: people helping people,” Burgess explains. “So we said, ‘Of course, we’re here to help.’”

CU1 has since been working on stabilizing MAC’s operations and devising a process to blend the institutions. A key goal is to provide greater scale and resources to members without sacrificing local focus.

Notably, there’s a significant size difference between the credit unions. CU1, which holds $1.5 billion in assets, has nearly 400 employees, fifteen branches (with a sixteenth opening this year), and approximately 95,000 members. MAC, in contrast, has $175 million in assets, 66 employees, four branches, and about 18,000 members. The merged entity will operate under the CU1 brand, with more than 112,000 members and $1.6 billion in assets.

CU1’s and MAC’s shared value system remains central to the melding of their organizations. The result will be an expanded reach coupled with a continued local focus. “We’re still here in Alaska,” Burgess says, highlighting the commitment to local service and presence. “Our headquarters is in Alaska. Most of our employees are here in Alaska. I’m sitting in Anchorage right now and headed to Fairbanks.”

After the merger, CU1 intends to maintain all four MAC locations and staff members. On “operational day one”—which CU1 hopes will happen by the end of 2026—CU1 and MAC members will have expanded access to branches and services, Burgess says. “But what’s really important to us is that all of the MAC employees are staying on with Credit Union 1,” he emphasizes.

CU1 will benefit from having MAC’s team of professionals continue in their roles. “I think CU1 is getting amazing employees that are dedicated to the members and to Fairbanks,” Fillipi says. “That is going to make the transition easier.”

Once the institutions are fully integrated, CU1 and MAC members will have access to a total of twenty branches across the state—including a new Homer branch slated to open in June. Members will also be able to use more than fifty automatic/interactive teller machines and a co-op network with more than 30,000 surcharge-free ATMs around the country. “I will be updating online banking to make that much simpler and easier for MAC members,” Burgess says. “So we’re really kind of expanding from a physical footprint perspective and then adding that technology onto the backside as well with the scale that Credit Union 1 has.”

Additionally, MAC members will benefit from higher lending limits after the merger—up to $1 million for homes and $300,000 for vehicles or recreational toys. Currently, MAC provides up to $200,000 in total for each individual loan.

While some operational components will be updated, including system integrations and staff training, many member-facing services and experiences will remain consistent. The goal is for members to experience enhanced offerings and access to resources with minimal disruption to everyday banking.

For the sake of continuity, all current MAC branches will initially retain their identity—even as operations shift to CU1’s software and platforms. For two years after the merger, the credit union’s Wasilla, Palmer, and Fairbanks branches will continue to operate under the MAC name as “a division of CU1.”

The long-standing Fort Wainwright Federal Credit Union branch, however, will retain its current name and function as a division of CU1 for five years. “Wainwright is really important to the MAC team,” Burgess says. “And from a Credit Union 1 perspective, we’re already a combination of many other credit unions. So, of course, we’re going to honor that history. We’re showing that nod to the history to make sure that they know we really care about their members and their history and the shared values that we have.”

Fillipi says the decision to retain the MAC name for the Fort Wainwright Federal Credit Union branch and operate it as a division of CU1 for five years was both intentional and meaningful. The choice was made because the identity of MAC holds great significance for the military community it serves. “We did not want the military to feel that their needs were being overlooked or that the credit union was no longer dedicated to serving them,” he says.

CU1 is not only broadening its presence but also making major strides in expanding business account services and lending to ensure there are local options for small businesses and entrepreneurs. This marks a notable development, as credit unions—which historically have focused less on commercial services—are increasingly providing these solutions to business members.

“Members told us they needed more commercial services,” Burgess explains. “After reviewing what other financial institutions were offering—and the fees they charged small businesses—we thought this was a good spot for Credit Union 1 to step into and help. We’ve now added business credit cards, equipment loans, vehicle loans, unsecured loans, and lines of credit—all because our small business members lacked these options.”

Burgess says Alaska’s small businesses and entrepreneurs—many running multiple ventures—each need some kind of financial service. That’s why, beyond just starting to offer these products years ago, CU1 recently hired a full business team and a specialized small business team. “We rolled out these extra products and have really seen some incredible growth,” he says.

CU1 is also taking steps to address the unique and evolving needs of business members. Historically, credit unions were established to address the needs of individuals who were not adequately served by traditional banks. Banks typically focus on maximizing shareholder value for owners, whereas nonprofit credit unions are member-owned organizations. Over time, however, the distinction between individual members and small business entities like sole proprietorships or limited liability companies has blurred.

This evolution in the business environment has influenced how financial institutions view their clients, Burgess says. Banks that concentrate on commercial lending typically offer multimillion-dollar loans with cap rates, expensive financing, and multiple contingencies. But many small businesses only need financing to support basic needs, often drawing from a checking account. In rural Alaska, most enterprises—aside from Native corporations—are small companies with just a handful of employees. “Those are the ones that really need help,” Burgess says. “And that’s what credit unions have always done: serve the underserved. And we think small businesses like that are underserved in Alaska.”

Wherever CU1 has a presence, it’s not just about putting up a branch or raising a flag, Burgess says. “We want the community to do well,” he says. “So we invest in local nonprofits. We hire people from the community and make sure they are trained and represent our credit union well and represent the community well.”

He continues, “And we care about those small businesses that are keeping the economy going as well. All of those things together make it so that we can survive in small locations like Kotzebue, Skagway, and even Homer. And we have a prosperous shared-value model between the local economy and the credit union.”

As CU1 looks to the future, innovation and technology investment will remain top priorities. Expanding digital banking capabilities, enhancing member engagement, and strengthening community involvement will also be key areas of focus. Burgess views the merger with MAC as “expanding the reach of CU1 but not changing the DNA or values” of the organization.

“Our commitment is to Alaska,” Burgess emphasizes. “We only have branches in Alaska… that continued, single focus of taking care of Alaska finances is really important to us.”