ORLANDO–Credit unions in Arizona, Florida and the Washington, D.C., area have announced merger plans.
The $120-million Martin FCU said its members will be voting on whether to merge into the $2.6-billion MidFlorida Credit Union, which is based in Lakeland. Martin FCU members will vote on whether to approve the merger in February 2017. The consolidation also needs approval from state and federal regulators.
In a released statement, Kevin Jones, president/CEO of MIDFLORIDA CU, said the merger will enable the credit union to “infill locations and connect MIDFLORIDA’s coast–to-coast branch network to more fully serve all of mid or central Florida.
Under the merger plan, Dan Kelley, president/CEO of Martin FCU, will become an Orlando market president of MIDFLORDA CU and will be responsible for the branch network and operations. Martin FCU has approximately 13,000 members.
The credit unions said Martin FCU’s four branches and its 45 employees are expected to be retained after the merger.
Meanwhile, in Glendale, Ariz., the $600-million Credit Union West said it will absorb via merger Desert Medical Federal Credit Union. The merger is scheduled to be completed on Dec. 1.
Desert Medical Federal Credit Union’s main sponsors are the HonorHealth network in the greater Phoenix area. HonorHealth was formed by a merger between Scottsdale Healthcare and John C. Lincoln Health Network. Through the merger Credit Union West will gain approximately 2,000 members and assets of $10 million.
“This is a win-win situation for both Credit Union West and Desert Medical Federal Credit Union’s members, and the HonorHealth network,” according to Bob MacGregor, president and CEO at Credit Union West. “This merger makes sense for a number of reasons. First, it is synergistic with our legacy of serving the healthcare professional community. Second, we will realize increased economies of scale helping reduce our costs and strengthening our financial value proposition to our members. And third, we will increase our presence and access for our members in the east valley where HonorHealth network operates.”
Finally, in Rockville, Md., members of the $101-million Energy FCU have voted in favor of merging into Pentagon Federal Credit Union. Energy FCU has 11,000 members, ad in a statement PedFed said another 5,000 potential members of Energy FCU—employees and contractors of dozens of firms in the community—will become eligible to join PenFed.
“As we welcome them into the PenFed family, members of Energy Federal Credit Union will receive a bonus dividend,” said PenFed President and CEO James Schenck, in a statement. “This is the beginning of a relationship that will help thousands of dedicated men and women in public service do better financially. The management teams of our two credit unions realize the substantial added value this merger will deliver. Together we will achieve PenFed’s core mission to help those in the national defense community and all who support them secure a sound financial future.”
Tyson, Va.-based PenFed said that while already serves U.S. Department of Energy employees at two locations in Washington, D.C., and Germantown, Md., PenFed will operate a full-service branch in Rockville, Md., as part of its network of 39 branches.
“The possibilities for our members and employees are really quite exciting,” said Energy FCU President/CEO Ronald Roy. “Our partnership with PenFed will provide enhanced products and services to our members, while creating renewed opportunities for our staff.”
The merger is scheduled to take effect on Jan. 1, 2017.