PROVIDENCE , R.I.—Two Rhode Island credit unions are proposing to merge.
The $52.2-million Postal Government Employees FCU is seeking to merge into the $3.475 billion Navigant Credit Union in Smithfield, pending a vote by PGEFCU’s approximately 2,500 members.
According to the credit unions, PGEFCU’s main branch at 179 West River St. in Providence will be both rebranded and become Navigant’s first branch in Rhode Island’s capital.
In its disclosure statement to members, Postal Government Employees CU said the merger is in members best interests due to increased regulatory burden, a desire to offer additional products and services that require increased staff expertise, and the opportunity to generate greater efficiencies.
“We evaluated all possible partners, and selected Navigant Credit Union because of its commitment to the financial well-being of the families, businesses and communities it serves, as well as its excellent reputation for member service, and expansive list of products and services,” Kenneth Poyton, CEO of PGEFCU, said in a statement. “Our members will also have access to their accounts at any of Navigant’s 24 branch locations throughout Rhode Island. Navigant Credit Union’s size, strength and stability offer the best opportunity for the growth of our membership and our employees.”
Distribution to Be Paid
A vote has been scheduled for July 25 at PGEFCU’s headquarters. PGEFCU reported $168,973 in net income during the first quarter, with capital of 12.36%. The credit union said it does plan to distribute a portion of its capital to members in an amount not to exceed $1.47 million by paying a bonus dividend of 3%.
“We’re excited at the opportunity to serve the members of PGEFCU, and we’re committed to providing them with the exceptional banking experience for which Navigant Credit Union is known,” said Navigant President and CEO Kathleen C. Orovitz in a statement.
Navigant CU has approximately 141,000 members.
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