Virginia Credit Union will soon absorb Virginia Trailways FCU. (BizSense file photo)
For the second time in less than a decade, Richmond’s biggest credit union is looking to take a small Charlottesville credit union under its wing.
Virginia Credit Union, which at $5 billion in assets and 324,000 members is one of the largest such institutions in the state, is in the midst absorbing Virginia Trailways Federal Credit Union.
Based in Charlottesville, Virginia Trailways is tiny in comparison, with just $2 million in assets and 525 members.
Virginia Trailways was founded in 1949 for employees of what was then known as Trailways Bus Lines.
VACU said Virginia Trailways proposed the merger to give its members access to VACU’s broader set of products and services.
Lynn Kirby, manager of Virginia Trailways, deferred any comment to VACU.
VACU said Virginia Trailways members voted to approve the merger on Nov. 13 and that both sides are aiming to close the deal in mid-December.
“Their current members would then transition to become VACU members with the expanded benefits and products,” VACU spokesman Mike Pressendo said in an email.
Those members would have access to VACU’s Charlottesville branch, which is less than a mile from Virginia Trailways’ office.
The merger is another example of a long-running trend of older, smaller credit unions looking to be merged into larger peers. The trend is driven by the rise in technology in banking and increased regulatory costs, both of which smaller institutions have had trouble keeping up with.
Virginia Trailways posted a loss of $52,000 in 2022 and had lost $15,000 through the first half of this year.
The same trend led VACU to Charlottesville in 2015, when it absorbed Sperry Marine Federal Credit Union, which had 2,000 members and $18 million in assets.
The trend has also led to small credit unions joining forces with similar-sized peers, as did Chesterfield-based Partners Financial Federal Credit Union and Argent Credit Union in Henrico earlier this year.
The deal with Virginia Trailways comes as VACU has broader expansion plans in mind.
It’s in the process of converting to a federal credit union, which would allow it to avoid being regulated by the state and solely overseen by the National Credit Union Administration.
VACU members approved the charter conversion in recent weeks and the credit union now awaits approval by the NCUA.
Virginia Credit Union will soon absorb Virginia Trailways FCU. (BizSense file photo)
For the second time in less than a decade, Richmond’s biggest credit union is looking to take a small Charlottesville credit union under its wing.
Virginia Credit Union, which at $5 billion in assets and 324,000 members is one of the largest such institutions in the state, is in the midst absorbing Virginia Trailways Federal Credit Union.
Based in Charlottesville, Virginia Trailways is tiny in comparison, with just $2 million in assets and 525 members.
Virginia Trailways was founded in 1949 for employees of what was then known as Trailways Bus Lines.
VACU said Virginia Trailways proposed the merger to give its members access to VACU’s broader set of products and services.
Lynn Kirby, manager of Virginia Trailways, deferred any comment to VACU.
VACU said Virginia Trailways members voted to approve the merger on Nov. 13 and that both sides are aiming to close the deal in mid-December.
“Their current members would then transition to become VACU members with the expanded benefits and products,” VACU spokesman Mike Pressendo said in an email.
Those members would have access to VACU’s Charlottesville branch, which is less than a mile from Virginia Trailways’ office.
The merger is another example of a long-running trend of older, smaller credit unions looking to be merged into larger peers. The trend is driven by the rise in technology in banking and increased regulatory costs, both of which smaller institutions have had trouble keeping up with.
Virginia Trailways posted a loss of $52,000 in 2022 and had lost $15,000 through the first half of this year.
The same trend led VACU to Charlottesville in 2015, when it absorbed Sperry Marine Federal Credit Union, which had 2,000 members and $18 million in assets.
The trend has also led to small credit unions joining forces with similar-sized peers, as did Chesterfield-based Partners Financial Federal Credit Union and Argent Credit Union in Henrico earlier this year.
The deal with Virginia Trailways comes as VACU has broader expansion plans in mind.
It’s in the process of converting to a federal credit union, which would allow it to avoid being regulated by the state and solely overseen by the National Credit Union Administration.
VACU members approved the charter conversion in recent weeks and the credit union now awaits approval by the NCUA.
VACU acting like a big bank again. They shouldn’t be allowed to call themselves a Credit Union. They act like the want to be the only Credit Union in the state.