Two credit unions based in southwestern Virginia, the $315 million ValleyStar Credit Union of Martinsville and the $65 million Piedmont Credit Union of Danville, plan to merge under the ValleyStar name, subject to regulatory approvals.
The proposed transaction would provide a “wider array” of products and services for the current members of Piedmont, along with an “expanded branch and ATM network,” the parties said.
Upon completion, the combined entity will have 40,000 members across Virginia and North Carolina.
“We are pleased to have the opportunity to merge with such a strong financial institution as ValleyStar,” said Alice Ann Crowl, president of Piedmont CU, in a statement. “By combining our two organizations, we will greatly enhance the quality of service for our members and create a more secure credit union for years to come.”
The member data conversion is expected to be complete by June 2018.
Delbert Lee Morgan, president and CEO of ValleyStar CU, stated that bringing Piedmont into the ValleyStar family is a “natural fit.”
“We have been serving the Danville community for years and this will allow us to serve them more effectively, with additional branches, ATMs, and employees in the area,” Morgan added. “We are looking forward to the partnership and all that it offers our members.”
According to its call reports, Piedmont CU posted net income of about $474,000 in 2016, after recording a net loss of about $229,000 in the prior year.
Meanwhile, ValleyStar recorded net income of almost $1.6 million in 2016, up from about $684,000 in the prior year.