Credit unions from coast to coast publicly announced nine new or completed merger plans during the first month of the year.
The $20.6 billion Pentagon Federal Credit Union in Alexandria, Va., was back on the merger trail when it announced its consolidation with the $173 million Miramar Federal Credit Union in San Diego. What’s more, the NCUA recently approved a second PenFed merger deal with the $227 million Valor Federal Credit Union in Scranton, Pa.
Last year, PenFed completed six mergers.
MFCU served 6,775 members who are civilian, active and retired military personnel and their families in San Diego County. The credit union was organized in 1952 to serve the Marine Corps Air Station in Miramar.
PenFed said an additional 40,000 potential members will become eligible to join the credit union. PenFed currently serves more than 1.4 million members.
“California has been a key market for PenFed for many decades, and we are proud to establish a retail presence in San Diego through a partnership with Miramar,” PenFed President/CEO James Schenck said.
Valor has been struggling financially, posting a net income loss of $2.2 million in 2016 with a net worth of 5.56% and an ROAA of -0.96% at the end of last year, according to NCUA financial performance reports. Valor was victimized by internal fraud when its former President/CEO Sean Jelen admitted last July that he embezzled more than $700,000. He is awaiting sentencing.
Valor members reportedly received ballots last week to vote on the proposed consolidation. The credit union serves more than 20,000 members.
The $65.4 million ADP Federal Credit Union in Roseland, N.J., said it merged into the $2.5 billion UNIFY Financial Credit Union in Torrance, Calif.
ADP FCU was founded in 1976 to provide financial services for employees of the Automatic Data Processing Inc. in Clifton, N.J. The credit union, which grew its membership to 8,799, also managed an office in Alpharetta, Ga.
“This merger partnership provides the opportunity for our credit union to take a significant step forward in our future growth and long-term success to benefit our members,” ADP FCU President/CEO Rick Herbert said.
The $24.6 million Landmark Credit Union in North Adams, Mass., said it plans to merge into the $1 billion Greylock Federal Credit Union in Pittsfield, Mass.
Landmark was founded in 1940 and serves 2,596 members. The merger is expected to be completed in April.
The $10.5 million East Hartford Credit Union in East Hartford, Conn., said it plans to merge into the $19.4 million America’s First Network Credit Union in Trumbull, Conn.
Founded in 1959, East Hartford serves nearly 1,500 members.
The consolidation is expected to move forward pending approval from the state’s regulator. The $19.3 million Housatonic Teachers Federal Credit Union in Stratford, Conn., merged with the $400 million Nutmeg State Financial Credit Union in Rock Hill, Conn.
Housatonic Teachers, founded in 1935, served 1,556 members.
Housatonic Teachers will continue to operate under its name as a division of Nutmeg State Financial.
Pending regulatory approval, the $19.2 million Battle Creek Area Community Federal Credit Union in Springfield, Mich., is expected to merge into the $713 million Honor Credit Union in Berrien Springs, Mich.
Founded in 1935, Battle Creek Area Community serves more than 2,000 members.
The $8 million Salt Creek Credit Union in Westchester, Ill., has merged into the $581 million Vibrant Credit Union in Moline, Ill.
Salt Creek was established in 1960 and served 2,258 members.
The $3.3 million Grays Harbor Woodworkers Federal Credit Union in Aberdeen, Wash., has consolidated into the $131 million Great NorthWest Federal Credit Union, also based in Aberdeen.
Founded in 1955, Grays Harbor Woodworkers served more than 800 members.
