Small Virginia Beach credit union to merge into Chartway FCU
The National Credit Union Administration has signed off on a proposal for St. Matthew’s Federal Credit Union to merge with Chartway FCU.
The deal will expand Chartway FCU’s assets to $2.3 billion and increase its total membership to more than 190,000. The former St. Matthews members will gain access to a broader array of products and services, including online, mobile, video and phone banking, as well as remote deposit, mobile bill pay and digital wallet services.
“Saint [sic] Matthew’s has always believed in helping families get ahead financially,” said JoAnne Siebels, manager and treasurer of the $5.7 million-asset institution. “That’s why, following thoughtful conversations and consideration, we determined that the opportunity to join Chartway — a financially strong credit union with a vibrant culture, and a mutual commitment to serving its team, members and communities — would bring tremendous value to our membership.”
St. Matthew’s lost about $63,000 during the first half of 2020, compared with earnings of $233 during the same period last year. The loss was driven by increased allowance for loan losses, a 27% reduction in interest income and a 37% increase in employee compensation and benefits costs. A notice to members indicated that losses are expected to continue through the remainder of 2020. Siebels and two other staffers are expected to recieve a total of about $40,000 in severance pay if they do not stay on after the merger, along with about $24,000 in sick leave.
Both institutions are headquartered in Virginia Beach, Va. Members of St. Matthew’s will vote on the merger on Nov. 16. The deal is expected to close by year-end.