ALEXANDRIA, Va.—The $20-billion PenFed Credit Union is absorbing Alamo Federal Credit Union in San Antonio via a merger.
The combination was proposed by PenFed, according to the CU, which indicated it continues to seek other merger partners. The move will bring another large asset CU to the San Antonio market, which is home to a number of big CUs serving military memberships.
The $45-million Alamo FCU has approximately 6,000 members.
“The merger with Alamo Federal Credit Union expands PenFed’s field of membership in Greater San Antonio to include many employees of the U.S. Postal Service who work in the area,” said PenFed CEO James Schenck. “Postal workers perform critical service for our nation. I look forward to the opportunity to offer low loan rates and high dividend yields to members of a fantastic team who San Antonians rely upon daily…The merger is the result of months of discussions and planning. Together, the boards and management teams of our two credit unions realized the incredible added value we could provide to our respective members by merging.”
The merger is to take place in early August.
“San Antonio is a very attractive market with a strong military heritage and we plan to continue exploring merger partnership opportunities in the future as we believe we can add tremendous value to all stakeholders,” said Executive Vice President and President of Affiliated Businesses at PenFed Credit Union Shashi Vohra. “In terms of market-leading products and best-in-class service, PenFed offers its members an advantage that is clearly undeniable,”
Alamo Federal Credit Union CEO John Kirk said, “The possibilities for our members—when I think of this merger in terms of scale—are really quite exciting. Partnering with PenFed Credit Union enables Alamo Federal Credit Union to leverage the size and scale of PenFed to do more for both its members and employees. I believe our members will notice tangible changes right away. Most evident will be the low interest rates on auto loans and mortgages, PenFed’s award-winning credit products and the convenience of mobile transactions. Our members are going to experience a new level of credit union service and value through this partnership.”