Three small credit unions headquartered in Southern states have agreed to merge and create an institution with $216 million of assets.
The three are the $96 million-asset Pinnacle Credit Union in Atlanta, the $80 million-asset RVA Financial Federal Credit Union in Richmond, Virginia, and the $52 million-asset MUNA Federal Credit Union in Meridian, Mississippi.
They would maintain their individual brands for a short time after the merger is complete until they settle on a unified name, the institutions said in a press release Tuesday. Pending approvals, the merger is expected to be completed early next year.
Bo Pittman, president and chief executive of MUNA, would be the chief executive and regional president of the combined entity. Matt Selke, president and CEO of Pinnacle, would be the chief financial officer and regional president; and Rick Preble, president and CEO of RVA Financial, would be the chief operations officer and regional president.
The credit unions said that in today's highly regulated, high-tech environment, it is becoming more difficult for smaller credit unions to compete in everything from technology to recruiting.
All three credit unions share the same core operating system, which will make a system conversion a much easier process for members and employees, the credit unions said.
"As credit unions, we are committed to our roots and the communities we were started in," Selke said in the press release. "We have a deep history in our community. Pinnacle is the second-oldest credit union in the state of Georgia. Continuing to maintain our community feel, all while gaining efficiencies and improving the member experience through additional product and service offerings and access points, is a true win-win and we can't wait to get started."
Preble said that together the credit unions would be able to provide current and prospective members access to even more products and services. For example, the merged credit union will be able to offer a 24/7 contact center, home equity loans, business lending and interactive teller machines — something not all three of the organizations are currently offering.
They can also offer more professional growth opportunities for employees and will be able to invest more deeply in the communities they serve.
RVA Financial is Community Development Fund Institution-certified. The combined credit unions would remain committed to serving low-income communities and catering to people who lack access to financial products, services and lending, the companies said.
RVA Financial earned $179,000 in the first six months of 2022, a 2% increase from a year earlier, according to call report data from the National Credit Union Administration.
MUFA earned $287,000 in the first six months of 2022, a 12% increase, and Pinnacle earned $2 million in the first six months of 2022 after earning $3,800 in the first half of 2021.
