The $10.6 million Assurance Federal Credit Union in Richmond, Va., will officially merge with the $191 Argent Federal Credit Union in Chester, Va., on Oct. 1.
Assurance FCU members voted in favor of the merger proposal on Sept. 19, according to Assurance FCU’s website and an Argent FCU prepared statement.
Post merger, Assurance employees will continue to serve members at its branch in Richmond, which will become Argent FCU’s fifth branch, the credit unions said.
Like many small credit unions, Assurance was facing financial challenges with declining loan and fee income from 2008 to 2012. In that same time period, the cooperative posted total net income losses of more than $380,000, NCUA financial performance reports show.
Assurance FCU, which served 2,136 members, was chartered in 1958 to serve employees of Blue Cross and Blue Shield of Virginia. In 2007, the cooperative changed its name to Assurance and converted its charter from state to federal.
“We are pleased to welcome Assurance members to Argent Credit Union,” said Rose E. Gilliam, Argent’s president/CEO, who will lead the combined $205 million organization cooperative and its combined 23,195 members. “Our commitment is to create tangible economic value for members and we are looking forward to the opportunity to serve the members of Assurance Federal Credit Union.”