Chesterfield Federal Credit Union plans to merge with the much-larger Virginia Credit Union.
The boards of both credit unions have approved the merger, the financial institutions announced Thursday.
The merger still needs regulatory approval and approval from Chesterfield Federal Credit Union members. A special meeting of its members is scheduled for Jan. 23.
If members approve the deal, the merger is expected to take place in early 2020.
Chesterfield Federal Credit Union’s two branches would become full-service branches of Virginia Credit Union once the deal is completed.
Current CFCU employees would have the opportunity to apply for positions at Virginia Credit Union.
Chesterfield Federal Credit Union sought the merger because its board believes it is in the best interest of the credit union and its membership.
“We made this decision for the long-term sustainability and expansion of services to our members,” said Scott Zaremba, chairman of the Chesterfield Federal Credit Union’s board who also is a deputy Chesterfield County administrator. “With growing costs for technology, and compliance and security, it is increasingly difficult for small and midsize credit unions like ours to provide the range of services that members deserve and expect.”
Chesterfield Federal Credit Union, which was founded in 1963, primarily serves employees of Chesterfield government and Chesterfield public schools.
It has about 12,000 members and $90 million in assets.
“We reached out to the Virginia Credit Union because of our common base of operations, VACU’s stellar reputation, its wide range of products and services, and the fact that Virginia Credit Union’s mission and vision aligns so well with ours,” Zaremba said.
Chesterfield-based Virginia Credit Union, with $3.7 billion in assets, is the largest state-chartered credit union in Virginia with 18 branches across the state, including four in Chesterfield.
“We already serve thousands of Chesterfield County residents,” said Chris Shockley, Virginia Credit Union’s president and CEO. “Both credit unions have made financial wellness for our community a top priority, so we agree this represents a good fit.”