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.
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.
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.
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
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.
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.
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
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.
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.
merger requires a vote by our membership and final approval by regulators.
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.
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.
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.
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.
Employees at CFCU can apply for positions at VACU.
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.
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.
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.
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.
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.
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.
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.
Members can reference this calendar to keep informed of important dates in the merger process.
Members will receive their merger packet and ballot in the mail.
Ballots must be received by mail or in the branches.
Meeting of the membership at the North Courthouse Road Library. This is the last chance to vote for the merger
Proposed legal merger date, pending member vote and regulatory approval
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.