Merger mania at Pentagon Federal Credit Union continues unabated.
The $21.3 billion, Alexandria,Va.-based credit union announced that members of Augusta Metro Federal Credit Union of Augusta, Ga. voted to merge their $115 million institution with PenFed.
The transaction will add Augusta Metro’s more than 22,000 members to PenFed (which now boasts almost 1.5 million members).
This deal marks PenFed’s second partnership in Augusta; Last year,
“PenFed is committed to providing exceptional value and first-class service to our loyal members,” PenFed president and CEO James Schenck said in a statement. “We are confident that this alliance will help Augusta Metro’s members and any new members do better financially.”
PenFed plans to retain Augusta Metro's entire management team, including its CEO.
Ricardo Chamorro, PenFed’s SVP for Mergers and Acquisitions, commented that Augusta Metro’s “fantastic team, the rich heritage of its membership and the growing importance of Fort Gordon in our nation’s cybersecurity efforts make this a perfect partnership.”
Augusta Metro’s chairman Michael Johnson noted that its members will receive a one-time special dividend as a result of this merger.
“This was the best long-term strategic decision for Augusta Metro,” said Sherry Saxon, Augusta Metro’s CEO. “PenFed is one of our nation’s strongest credit unions and we believe that the immediate value to our members and the career opportunities for our staff are very compelling.”
According to its latest Call Report, Augusta Metro generated net income of $3,243 in 2016, after posting net income of $153,025 in the prior year. Augusta Metro also saw its membership slip from 23,607 at the end of 2015 to 22,463 at the end of last year.
As for PenFed, the giant credit union continues to pursue and consummate a spate of mergers with smaller institutions, having already merged with
