Members of Constellation Federal Credit Union have approved a proposal to merge the institution with the $3.4 billion-asset Northwest Federal Credit Union.
Northwest FCU of Herndon, Va., said on Monday that the merger, which has already received approval from the National Credit Union Administration, will take effect July 1.
Based in Reston, Va., CFCU has about $223 million in assets.
The combined entity will retain the Northwest FCU brand name, with Jeff Bentley remaining as CEO. CFCU’s current CEO, Bobby Josephson, will serve as a “senior consultant.” In addition, all current CFCU employees will join Northwest FCU’s staff.
“Merging with this strong and stable credit union will introduce expanded services, benefits, and new economies of scale,” Josephson said in a statement.
Bentley stated that the merger was a “natural one,” as the two institutions share a commonality of membership and geographic footprint.
“We both understand and value the security needs of our many members who work for the federal government while also understanding the importance of providing convenient and exceptional service,” he added. “The merger will also introduce two new Northwest Federal branch locations.”
Northwest FCU posted net income of about $24.8 million in 2018, an 18.3 percent increase over the prior year. CFCU saw net income of about $522,000 last year, a 54 percent drop from 2017, though total employee compensation and benefits costs were up more than 30 percent last year.
