Members of $173 million Miramar Federal Credit Union in San Diego voted to merge into $20 billion Pentagon Federal Credit Union of Tysons, Va.
Officials with the two credit unions said Miramar FCU members approved the merger by an “overwhelming” margin.
PenFed said the merger means nearly 7,000 Miramar FCU members will earn higher rates on savings and gain access to lower rates on loans. The new members include military and civilian employees serving the United States at the Marine Corps Air Station in Miramar, as well as a host of other members in the area. In addition, some 40,000 potential members will become eligible to join PenFed.
MCAS Miramar was made famous by the 1986 movie “Top Gun,” starring Tom Cruise, Kelly McGillis and Val Kilmer.
“We are very excited to welcome the members and employees of Miramar Federal Credit Union to the PenFed family, joining the more than 112,000 other California residents – nearly 10% of them in San Diego – who already are members of PenFed,” James Schenck, president and CEO of PenFed, said in a statement. “California has been a key market for PenFed for many decades and we are proud to establish a retail presence in San Diego through a partnership with Miramar. PenFed is committed to helping our collective members do better financially as we strive to deliver the best rates and experiences anywhere and anytime and to being an active participant and contributor in the communities we serve.”
PenFed Executive Vice President and President of Affiliated Businesses Shashi Vohra also expressed excitement for the partnership. “Miramar Federal Credit Union is a natural partner for PenFed. Miramar members will benefit tremendously from our market-leading products and exceptional service. We are also thrilled to welcome Miramar’s loyal employees and to provide them with enhanced benefits and career opportunities.”
PenFed said Ricardo Chamorro, senior vice president for mergers and acquisitions, has led the credit union’s efforts to build and nurture strategic partnerships with select CUs. “Miramar Federal Credit Union has a rich military heritage, a solid leadership team, and tremendous growth potential,” said Chamorro. “We are excited to increase credit union membership in Southern California and look forward to establishing a dialogue with other potential partners in the area.”
Michael Croll, chairman of Miramar FCU’s board of directors, said the board is “confident that a partnership with PenFed will be of great value to our members and the Miramar community.”
“As part of this merger partnership, our members will receive a sizeable one-time special dividend and benefit tremendously from PenFed’s market-leading rates and award-winning products and services,” Croll said.
“The members and the staff are big winners in this partnership,” stated Paul Socia, Miramar Federal Credit Union’s CEO. “PenFed will bring enhanced products and services to the market while creating powerful new opportunities for our staff. I am excited to join PenFed and certain that together we will do better for our members.”
PenFed said it is on a “growth trajectory,” rapidly expanding its member and employee bases while adding additional geographical physical presences into the communities it serves.
Established in 1935 as the War Department Credit Union, PenFed Credit Union is one of the largest credit unions in the country, serving more than 1.5 million members worldwide.
