Virginia Credit Union will continue using the same name even after it converts into a federal credit union. (BizSense file photo)
One of Richmond’s biggest financial institutions has closed out the year by taking a small Charlottesville credit union under its wing.
Virginia Credit Union last week finalized its deal to absorb Virginia Trailways Federal Credit Union.
The merger adds Virginia Trailways’ $2 million in assets and 525 members to VACU’s $5 billion in assets and 324,000 members.
The marriage was proposed by Virginia Trailways, which was founded in 1949 for employees of what was then known as Trailways Bus Lines. The deal was seen as a way to give Trailways members access to VACU’s broader set of products and services.
Members of both credit unions approved the merger in mid-November. The deal officially closed Dec. 15, VACU confirmed this week.
Trailways members now 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 merge 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 also has 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 continue using the same name even after it converts into a federal credit union. (BizSense file photo)
One of Richmond’s biggest financial institutions has closed out the year by taking a small Charlottesville credit union under its wing.
Virginia Credit Union last week finalized its deal to absorb Virginia Trailways Federal Credit Union.
The merger adds Virginia Trailways’ $2 million in assets and 525 members to VACU’s $5 billion in assets and 324,000 members.
The marriage was proposed by Virginia Trailways, which was founded in 1949 for employees of what was then known as Trailways Bus Lines. The deal was seen as a way to give Trailways members access to VACU’s broader set of products and services.
Members of both credit unions approved the merger in mid-November. The deal officially closed Dec. 15, VACU confirmed this week.
Trailways members now 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 merge 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 also has 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.