ATLANTA–Three credit unions in three different states have announced plans to merge with each other.
The $95-million Pinnacle Credit Union in Atlanta, the $51-million MUNA FCU in Meridian, Miss., and the $80-million RVA Financial Credit Union in Richmond, Va. said they are seeking to combine pending regulatory approval and membership votes.
According to the three credit unions, if approved each would maintain its individual brand for a “short time” as they work to determine a unified brand. The organization’s combined assets would be approximately $216 million and the CU would more than 23,000 members with five branches across Virginia, Mississippi, and Georgia.
All three credit unions are running the same core system, which they noted will make merging easier. NCUA call report data show all three credit unions are profitable.
Proposed Management
The merger proposal calls for Bo Pittman, current president/CEO of MUNA FCU, to become CEO and regional president of the proposed organization; Matt Selke, current resident/CEO of Pinnacle, to become CFO and regional president, and Rick Preble, current president/CEO of RVA Financial, to become COO and regional president.
“This merger represents a mutually advantageous partnership between three member-focused credit unions committed to providing exceptional service while offering competitive products and access to their members and the communities they serve,” the credit unions said in a statement. “In a global financial sector that is changing, these organizations are committed to a collaborative pooling of resources and talent coupled with a mission to serve members, employees, and communities better.
“All three credit unions are in agreement that in today’s highly regulated, high-tech environment, it is becoming more difficult for smaller credit unions to compete in everything from technology to recruiting,” the statement continued. “This is what makes the idea of smaller credit unions working together collaboratively to pool resources and do things together for the good of their members a strategy some credit unions are choosing to pursue. The idea of pooling resources is the very foundation credit unions were built on. The credit union industry remains steadfast in its mantra of people helping people and mergers are just one way to do this.”
What CEOs are Saying
The CEOs all issued statements as part of the announcement:
- “As the CEO of MUNA Federal Credit Union, I’m excited about this opportunity to combine three strong and financially healthy credit unions, combining our resources and talent for the benefit of members, employees, and communities,” said Pittman. “This partnership is rooted in MUNA’s mission to be a dedicated and caring team supporting our member's financial needs with honest, motivated, and reputable service before self.”
- “As credit unions, we are committed to our roots and the communities we were started in,” said Matt Selke. “We have a deep history in our community. Pinnacle is the second oldest credit union in the state of Georgia. Continuing to maintain our community feel, all while gaining efficiencies and improving the member experience through additional product and service offerings and access points, is a true win-win and we can’t wait to get started.”
- “Together we would be able to provide our members, and prospective members access to even more products and services now and in the future, offer more professional growth opportunities for employees, and be able to invest more deeply in the communities we serve,” said Preble. “We’re excited about the benefits this partnership offers and see this as the beginning of something really great happening in our industry. When you have the right partners and the right motives, it supports what this industry is all about.”
Additional Services
The credit unions said that once merged they will also be able to offer members a 24/7 contact center, home equity loans, business lending, and ITMs, services not all three of these organizations are currently offering.
“Another benefit of this merger is the fact that RVA Financial is community development financial institution (CDFI) certified and once combined the three credit unions will remain committed to serving low-income communities and providing financial services to people who lack access to financial products, services, and lending,” the credit unions said.
The merger requires approval by members of MUNA FCU and Pinnacle Credit Union. If approved, the credit unions said they plan to complete the merger in early 2023.
About the Credit Unions
MUNA Federal Credit Union
MUNA FCU was established in 1962 as a Navy military CU and operates one branch, serving more than 6,000 members. MUNA FCU reported $286,558 in net income for the first half of the year, with capital of 10.47%.
Pinnacle Credit Union
PCU was established in 1926 and serves more than 6,000 members via two branch locations. Pinnacle reported $2.040 million in net income over the first six months of the year, with capital of 9.01%.
RVA Financial Credit Union
RVA Financial was established in 1950 and serves more than 9,000 members with two branch locations. It reported $179,123 in net income in the first half of 2022, with capital at 9.27%.