GEICO Federal Credit Union in Chevy Chase, Md., has agreed to merge into Baxter Credit Union of Vernon Hills, Ill.
The $137 million-asset GFCU will retain its name but will operate as a division of BCU once the merger closes, which is expected to happen in August.
"It is an ongoing privilege to serve GEICO associates and their family members and we look forward to delivering extraordinary member experiences for many years to come,” Bill Costa, chairman of GEICO FCU, said in a statement.
Boards of both institutions agreed upon the merger, and the deal has received regulatory approval. The next step is for GEICO FCU's members to vote on the transaction.
One director from GFCU's current board will join BCU's board while another GFCU board member will join BCU's supervisory committee.
Both credit unions did not immediately return a request for comment on succession planning. BCU's website notes that both CUs “have taken measures to ensure the merger is good for everyone, especially for the GFCU associates.”
GFCU’s 10 branches will remain open. The institution earned $217,775 in 2019, down 49% from a year earlier, according to call report data.
The $3.8 billion-asset BCU serves over 265,000 members across the U.S. and Puerto Rico.
“GFCU and BCU are aligned in our shared philosophy and expectations of driving value for members and employees,” Mike Valentine, president and CEO of BCU, said in a statement. “The opportunity to provide even more value and services through partnership is a great movement forward.”
