Virginia-based Chartway Federal Credit Union is slated to complete by month's end an NCUA sanctioned merger of an undisclosed $400 million Midwest credit union, its president/CEO Ron Burniske said Monday.
"I am not at liberty to identify the credit union but we have already signed a management agreement in which we are already running the credit union and expect final NCUA approval to a merger at the end of December," said Burniske, head of the $1.3 billion Chartway, located in Hampton Roads/Virginia Beach.
Under the deal in the works for months, Chartway will take over the Midwest CU's five branches and a community charter and operate in a market where real estate conditions have remained relatively stable with no sharp "decimation of values."
Burniske said the staffs of both Chartway and the targeted CU have been informed of the planned consolidation.
The Chartway CEO said also his CU, "in very healthy condition" is a member of an elite CU billion dollar group that is actively and aggressively soliciting mergers of CUs "where we have a suitable fit." He said his CU staff over the last year has made "maybe 150 calls" either e-mail, phone in person "or through general networking" inquiring with boards and CEOs about possible consolidations
"It's obvious that based on NCUA field of membership restrictions, this is a window of opportunity and a feasible route we can grow," concluded Burniske.