Air Force Federal Credit Union and Local 142 Federal Credit Union, both based in San Antonio, Texas, announced that their proposed merger became effective on April 27, after having received regulatory approval from the National Credit Union Administration.
Under terms of the merger agreement, AFFCU will be the surviving entity and comprise $408 million in assets and more than 47,000 members.
AFFCU’s president and CEO, Robert A. Glenn, remains the CEO of the combined organization.
In a letter to members, Glenn wrote that the boards of directors for Local 142 and AFFCU “had a discussion about a potential merger late last year.” Local 142’s membership voted in favor of the transaction in February 2018.
In addition, AFFCU said it will “absorb” all Local 142 staff and their one branch on Quincy Street in San Antonio.
Local 142 FCU has served the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry, San Antonio Building and Construction Trade Council, United Steel Workers, Amalgamated Clothing and Textile Works Union, Service Employees International Union and other local union workers in Bexar and surrounding counties for over 65 years.
The merger broadens AFFCU’s branch network to seven locations in and around the San Antonio area. New Local 142 FCU members will also have access to those branches, as well as the shared branching network with over 5,000 locations and the CO-OP ATM network with nearly 30,000 ATMs worldwide.
“We are honored that the board of directors and members of Local 142 were unanimous in their approval to become our partner,” said Glenn in a statement. “AFFCU welcomes its members and looks forward to serving them in the future.”
Danny Sanchez, vice president of marketing for AFFCU, told Credit Union Journal by email that Marcie Burleson, the former CEO of Local 142 FCU, “will be moving forward as an employee of AFFCU” and currently is the branch manager of the branch on Quincy Street in San Antonio.
AFFCU posted net income of about $206,000 in 2017, down from $1.5 million in the prior year. Over that time, the credit union’s volume of total loans and leases climbed from about $266 million in 2016 to about $308 million last year.
Meanwhile, Local 142 recorded a net loss of about $53,000 last year, after incurring a net loss of about $36,000 in 2016. Also, from 2016 to 2017, the credit union’s volume of total loans and leases slipped from about $3.1 million to $2.8 million.