November 07, 2019 | Richmond, VA
The Board of Directors of Chesterfield Federal Credit Union (CFCU) has approved a merger with Virginia Credit Union (VACU) and is seeking the approval of CFCU members.
“We made this decision for the long-term sustainability and expansion of services to our members,” explained Scott Zaremba, Chair of the CFCU Board. “With growing costs for technology, and compliance and security, it is increasingly difficult for small and mid-size credit unions like ours to provide the range of services that members deserve and expect. The Board is made up of members of CFCU, and we believe the merger is in the best interest of the credit union and the membership.”
Chesterfield Federal Credit Union was founded in 1963 and primarily serves employees of Chesterfield County, Chesterfield County Schools and their families. The credit union has approximately 12,000 members and $90 million in assets. Zaremba, like other Board members, serves as a volunteer. He is a deputy county administrator with Chesterfield County.
The merger is subject to a vote by the Chesterfield Federal Credit Union membership and final approval by regulators. CFCU’s Board has called a special meeting of its members now scheduled for March 16, 2020. A notice being mailed to CFCU members will include additional information about the merger, the voting process, and includes a ballot and postage paid return envelope.
In his letter to members, Zaremba explains, “We reached out to the Virginia Credit Union because of our common base of operations, VACU’s stellar reputation, its wide range of products and services, and the fact that Virginia Credit Union’s mission and vision aligns so well with ours.”
Virginia Credit Union’s Board of Directors has also approved proceeding with the merger.
“The Board of Chesterfield Federal Credit Union first reached out to us several months ago. Our credit union is based in Chesterfield County, four of our branches are here, and we already serve thousands of Chesterfield County residents. Both credit unions have made financial wellness for our community a top priority, so we agree this represents a good fit,” said Chris Shockley, President/CEO of Virginia Credit Union. “We look forward to providing excellent service to CFCU members.”
With $3.7 billion in assets, Virginia Credit Union is the largest state-chartered credit union in Virginia and already serves many Chesterfield County residents and employees. VACU has 18 branches and a variety of online and electronic services to serve members wherever they are. Virginia Credit Union is federally insured by the National Credit Union Administration (NCUA) and is an equal housing opportunity lender.
Following the merger, CFCU members will benefit from more robust online and mobile banking technology, expanded credit card options, greater deposit, loan and mortgage services, and a fee rebate program that provides access to ATMs everywhere.
“Keeping up with rapidly-evolving technology has been an ongoing challenge,” said Zaremba. “I expect that these enhanced programs and services from VACU will be appreciated and attractive to our members.”
If members approve, the merger is expected to take place in early 2020, although full consolidation of CFCU’s operations into VACU’s would require additional weeks to be completed. It is expected that two of CFCU’s branch facilities would become full-service branches of VACU. Current employees of CFCU would have the opportunity to apply for positions at Virginia Credit Union.
A financial cooperative serving more than 285,000 members, Virginia Credit Union offers a variety of affordable banking services, loans, mortgages, and free financial education resources, with a focus on helping people feel more confident about their finances. Virginia Credit Union is an equal housing opportunity lender and is federally insured by NCUA.
Glenn Birch |