Important Member Notice | As we approach the systems merger with Virginia Credit Union, please be aware of the following important dates and times.
Access to CFCU On-The-Go services, including Net24, Dial24 & Mobile24 will be unavailable after 5pm on Friday, May 29th.
Access to mobile deposit using your Mobile24 Mobile Banking app will be unavailable after 5pm on Thursday, May 28th.
Starting Monday, June 1st, you can re-enroll in home banking on the Virginia Credit Union website.

Chesterfield Federal Credit Union Members Approve Merger With Virginia Credit Union

Updated 3/18/2020


At a special meeting on Monday, March 16th, Chesterfield Federal Credit Union members overwhelmingly voted in favor of a merger with Virginia Credit Union. Members can expect to receive updates regarding the merger and the impact on their accounts in the coming weeks.

Members during the meeting asked several questions of our Board of Directors, which are highlighted below.

Are Chesterfield County Government and School Employees are already eligible to join Virginia Credit Union? If so, doesn’t this limit choice for members?

Chesterfield County and Chesterfield County Public School employees are already eligible for membership for Virginia Credit Union.  However, even with this overlap in eligibility, your Board feels that a merger with Virginia Credit Union is a superior option and in the best interest of our members. Additionally, there are 15 additional groups that are currently not eligible for membership with Virginia Credit Union.    

Why is this decision being made now when recent financial statements are strong?

Your Board characterizes the merger as taking action in the best interest of the members. One good year of financials does not indicate a trend and the Board of Directors does not believe that CFCU is strong enough to continue to be self-sustaining. Multiple cost-cutting measures have already been taken in 2019, and a substantial insurance settlement was received due to the passing of an employee. This positively impacted the financials for 2019, but would not be available moving forward. The board does not feel that the CFCU could survive another recession, and with the current global pandemic and likely recession ahead of us, the best time to find a merger partner is now.    

How many CFCU employees would lose their jobs with the merger?

Two CFCU employees have already accepted positions with Virginia Credit Union.  This week, 15 additional employees will receive offer letters for positions with Virginia Credit Union.  Other CFCU employees have found employment elsewhere and have voluntarily left.  Remaining employees are invited to apply for open positions with Virginia Credit Union, and have access to both internal and external employment postings.     

Will there be any severance packages for the employees who are not offered positions with Virginia Credit Union?

CFCU employees that are not offered a position with Virginia Credit Union or do not accept a position with Virginia Credit Union will receive a separation package provided they remain through system conversion.

  • FAQs
  • Timeline
FAQs

Frequently Asked Questions

We have included many of the questions members are asking about the merger below for your reference.  We'll update this page as we receive more information.

What is occurring?

The Board of Directors of Chesterfield Federal Credit Union (CFCU) has determined that it is in the best interest of our membership and our credit union to merge and become a part of Virginia Credit Union (VACU). The Board made this decision to ensure the long-term sustainability and expansion of services to our members.  

Why is this happening?

It is increasingly difficult for small and mid-size credit unions like ours to provide the range of services that members deserve and expect, especially with the growing cost of technology, regulatory compliance and security. Our Board determined that such a step was necessary and in the best interest of the credit union and our membership.  

Was CFCU forced to do this? Is it in financial trouble?

It is the responsibility of our credit Union’s Board to position our credit union to best serve the members. So while our credit union is financially sound, the Board recognizes the potential for economic challenges ahead. The last recession was very difficult for many businesses, including our credit union, and the Board is not confident that CFCU could remain well-capitalized through another economic downturn. The Board believes the time to take this step is now, while our credit union has the opportunity to partner with a strong, local credit union. With Virginia Credit Union, our CFCU Board has found a credit union with a similar mission for members’ financial well-being, and the resources necessary to invest in expanding service for our membership.  

What has to happen for the merger to be completed?

The merger requires a vote by our membership and final approval by regulators.  

When would this occur?

We expect the merger will become legal in early 2020 and the full consolidation of CFCU’s operations into VACU would be completed by the middle of 2020.  

Will VACU continue to operate the CFCU branches?

For now, all three CFCU branches will continue to operate as before. However, once the merger consolidation is complete, the CFCU branch at Brandermill will be closed. Virginia Credit Union has branches at Hancock Village and Genito that can serve members in that area. The CFCU branches in the village of Midlothian and near Chesterfield Courthouse don’t overlap with VACU’s branch footprint and would remain open.  

What other changes should we expect?

Efforts will be made to make the merger as streamlined and simple as possible for CFCU members. VACU has similar products and services to those we offer, so in most cases, the transition will be simple. In the meantime, members should continue to use services as before. The merger requires a vote by our membership through a mailed ballot or at the member meeting. As a member, your support through this transition is appreciated.

Will VACU continue to support the services that CFCU offers?

There are no changes in immediate future, and you should continue to use your CFCU services as before. Once the merger is approved, there will be many operational details to be worked out and specific information will be shared with all members by mail, email and online to help all members know what to expect. VACU is interested in serving our membership and we will let them know about the programs we have supported in the past.  

What will happen to the CFCU employees?

Employees at CFCU can apply for positions at VACU.  

Is this definite? Will it help if I vote no?

Our CFCU Board approached Virginia Credit Union once they determined that a merger was in the best interest of our credit union and its members. They made the decision to ensure the long-term sustainability and expansion of services to our members. The Board supports the merger. A vote of the membership and final approval by regulators are required steps. Your support and participation are appreciated.  

Should I close my account?

No. The merger requires a vote by the CFCU membership and final approval by regulators. If all moves according to plan, full consolidation of CFCU’s operations into VACU’s would not be completed for several months. Until that time, CFCU members should continue using their CFCU services as before.  

Can I start using VACU locations now?

No. The merger requires a positive vote by the CFCU membership and final approval by regulators before it can proceed. If that happens, full consolidation of CFCU’s operations into VACU would require several months. Until that time, CFCU members should continue using their CFCU services as before.  

Why won’t VACU keep the Brandermill branch open?

At first, all three CFCU branches will continue to operate as before. However, once the merger consolidation is complete, the CFCU branch at Brandermill will be closed. Virginia Credit Union has branches at Hancock Village and Genito that can serve members in that area. The CFCU branches in the village of Midlothian and near Chesterfield Courthouse don’t overlap with VACU’s branch footprint and would remain open.  

Can I use my CFCU debit card to get cash at VACU ATMs without a fee?

For now, CFCU members should continue using their CFCU services as before. The merger requires a positive vote by the CFCU membership and final approval by regulators before it can proceed.    

Will this affect my membership in the credit union?

If the merger is approved by members and regulators, then all existing members will become members of Virginia Credit Union. Our credit unions will be working together for a smooth transition.  

Why didn’t the Board choose another credit union to merge with?

The Board considered various credit unions and selected Virginia Credit Union because of its range of products and services, commitment to Chesterfield County, and the alignment of our organizations’ missions.

Timeline

Timeline of Events*

Members can reference this calendar to keep informed of important dates in the merger process.

Week of January 27th

Members will receive their merger packet and ballot in the mail.

Saturday, March 14th, 2020

Ballots must be received by mail or in the branches.

Monday, March 16th, 2020 | 5:30pm

Meeting of the membership at the North Courthouse Road Library.  This is the last chance to vote for the merger

Friday, May 1st, 2020

Proposed legal merger date, pending member vote and regulatory approval

Monday, June 1st, 2020

Proposed system conversion date.  All Chesterfield Federal Credit Union accounts will become Virginia Credit Union accounts and members will have access to the full VACU branch network. 

* Please note that these dates reflect a change.  At the request of the NCUA, we are providing updated financial information to members, which requires a postponement of the Meeting of the Membership and a new member vote.