Happy New Year! I’m excited to welcome you back to Member’s Edge. As we transition into 2023, there is so much to look forward to, including our proposed merger with RTN Federal Credit Union (pending member and regulatory approval). While merging with another credit union is an exciting endeavor, I understand that we all have concerns and questions when changes are proposed. So, I want to share a little bit about the history and benefits of merging credit unions.
The idea of merging is an integral part of credit union history. In 1969, there were almost 24,000 credit unions in the United States. Today, there are just under 5,000. Both MVCU and RTN have a rich history of mergers, all of which make up our evolving family tree. Today, mergers have become even more necessary in order to remain competitive.
In 1990, the average asset size of credit unions was $22 million. As of January 2022, that number has increased to about $346 million. There’s even more: experts are projecting that in the next 13 years, the average will increase to about $2.5 billion. Our proposed merger with RTN is critical to not only enabling both credit unions to remain competitive, but allowing us to continue providing the quality services that go above and beyond our members’ expectations.
I am truly committed to our philosophy on mergers that puts members and team members first. This philosophy includes the following:
Because of our combined asset size, we’ll be able to offer more competitively priced products. For example, when Bridgewater and MVCU merged together, we completely eliminated thirteen fees (we started giving these services away to our members for free), reduced nine fees and increased ZERO fees.
Additionally, we will be able to offer additional products and services to both credit unions’ members. For example, MVCU members will have an additional 14 new products and services available to us that we didn’t have before the merger, like a 24-hour Call Center. Our RTN members will enjoy 21 new products and services that they don’t currently have available to them. When we discuss, strategize and execute a merger, it is always with the needs of our members and teammates taking top priority.
There are so many more exciting things to talk about regarding this merger. If you are interested in chatting with me directly, please consider attending one of our Merger Town Hall meetings. We will be holding many in-person and virtual meetings over the next few months to answer any questions you may have. You can find the Town Hall dates, locations and more information on our website at www.mvcu.com/merger.
We cannot do what we do without our incredible members. Thank you for your continued loyalty and support. I am so grateful to be a part of this growing community. I hope to see you all soon at one of our upcoming Town Hall meetings.