Members of Valor Federal Credit Union, Scranton, Pa., voted to merge with Pentagon Federal Credit Union of Alexandria, Va., the two CUs said Tuesday.
PenFed said in a statement that the “vast majority” of the members of $227 million Valor FCU were in favor of the merger.
In Valor FCU’s most recent call report, the credit union said it lost more than $2.2 million in 2016 as it placed more than $3.7 million in its Provision for Loan & Lease Losses. Its net worth ratio was 5.56%, making it “undercapitalized.”
The $21 billion PenFed said its new members gained through the acquisition include military and civilian employees serving the U.S. at the Tobyhanna Army Depot, those living within three miles of the Veterans Memorial Bridge in the towns of Stroudsburg and East Stroudsburg, and employees belonging to hundreds of select employer groups operating in Northeastern Pennsylvania.
At least 30,000 potential members will become eligible to join PenFed, the credit union said.
“We are very proud to welcome the members and employees of Valor Federal Credit Union to the PenFed family. They join the more than 36,500 other Pennsylvania residents who are already members of PenFed and benefitting from the great rates we provide to all our members,” James Schenck, PenFed’s president and CEO, said in a statement.
Chris Dawe, Valor’s interim CEO, said she was proud of the partnership and her role during the process. “As we evaluated strategic alternatives, it was clear to us that PenFed, one of our nation’s strongest and safest credit unions, was our best choice. I am excited for our members and valued staff.”
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. Last week, members of $173 million Miramar Federal Credit Union in San Diego voted to merge into PenFed.
Established in 1935 as the War Department Credit Union, PenFed is one of the largest credit unions in the country, serving more than 1.5 million members worldwide.
