ValleyStar Credit Union and Entrust Financial Credit Union, both based in Virginia, on Tuesday said they have entered into an agreement to merge, subject to a membership vote and regulatory approvals.
Entrust Financial Credit Union was established in 1970. It has $75 million in assets and serves more than 10,000 members. Entrust serves those who live, work, worship and volunteer in the Richmond, Va., area and surrounding cities and counties.
Once combined under the ValleyStar name, officials say, the credit union will have an estimated $500 million in assets and 55,000 members.
Assuming all approvals are secured, the legal merger date and member data conversion are anticipated to occur on June 30, 2019.
The two credit unions on Tuesday issued a statement thanking elected officials who passed job-creation legislation in 2016 that allowed credit unions to grow through out-of-market mergers, including State Sen. William M. Stanley Jr. and Gov.r Ralph Northam, who cast the tiebreaking vote in the Commonwealth of Virginia State Senate Chamber in February 2016 as lieutenant governor.
“The potential for this merger is monumental,” said Delbert Lee Morgan, president and CEO of ValleyStar Credit Union. “Both organizations have the same servant heart to members and community. Building a stronger organization will allow our combined credit union to offer superior products and services while continuing to expand membership and jobs to Virginians.”
Lisa Lambrecht, president and CEO of Entrust Financial Credit Union, agreed.
“This merger with ValleyStar Credit Union is an amazing opportunity for two servant-hearted credit unions to combine talents to enhance their positive impact on the community and the lives of their members for years to come,” Lambrecht said. “We remain steadfast in our commitment to the higher purpose of our members and the community.”
Headquartered in Martinsville, Va., ValleyStar Credit Union operates eight branch offices in the Collinsville, Danville, Martinsville, Roanoke, Rocky Mount, South Boston and Waynesboro communities.
In 2017, Entrust Financial CU reported $112,268 in net income. Its net worth ratio as of Dec. 31, 2017, was 8.29 percent (“well capitalized”).
ValleyStar was chartered in 1953 and serves southwest and central Virginia and north central North Carolina. The credit union has $390 million in assets and serves more than 42,500 members.
Last year ValleyStar CU generated $2,001,585 in net income. Its net worth ratio as of Dec. 31, 2017, was 14.38 percent (“well capitalized”).
