As part of its 2012 expansion, Rhode Island’s Navigant Credit Union has cut a deal to purchase a branch of the $248 million Coventry CU. The transaction includes the 3,000 members at Coventry’s Manville branch.
The branch takeover “is a bit more unusual than I first thought but fits nicely into our growth plans,” said Gary Furtado, president/CEO of the $1.2 billion Navigant, headquartered in Smithfield.
Coventry has said it seeks to shed its Manville branch as part of a retrenchment “to focus attention on member needs within Kent County.” The transaction is subject to approval of the Rhode Island Department of Business Regulation and Coventry members at the branch.
The president/CEO of Coventry, David Root, said the CU has maintained a 13-year relationship with its Manville members but decided “our normal base of operations is some 35 miles away’” in Coventry. The CU itself did report a year-end loss of $122,000 but had been profitable in 2010. Root called the Manville closing a difficult decision for the CU.
For its part, Furtado said the transaction would expand Navigant’s reach in northern Rhode Island giving it 10 branches. Navigant already has a branch in nearby Lincoln and is making plans for an additional branch in Chepacut in July.