The Richmond region’s biggest credit union has yet another initiative in the works to increase its size and stature in the state.

Virginia Credit Union announced on Thursday its plans to merge with Roanoke-based Member One Federal Credit Union.

The deal, which is subject to certain approvals and could close later this year, would create the third-largest credit union in Virginia with $6.8 billion in assets, nearly 500,000 members, 37 branches and 1,100 employees.

The credit unions said the merger is expected to close in mid-2024.

VACU is the larger of the two with $5.2 billion in assets, 320,000 members and 22 branches mostly around Richmond.

Member One has $1.6 billion in assets and 150,000 members. Its 15 branches are clustered in Roanoke, Lynchburg and the Blacksburg area.

The credit unions said the merger would create one of the 50 largest credit unions in the U.S.

“This merger is between two financially healthy, future-focused credit unions committed to providing unparalleled branch and digital access, along with amazing service for the members and the communities they serve,” the credit unions said in a joint press release. “In a highly competitive financial services industry, where consumers want things easier and more seamless than ever, this merger positions VACU and Member One to be a leading credit union to do just that.”

The credit unions say they don’t have plans to close any branches or lay off any employees from either side.

Chris Shockley (right) and Frank Carter.

VACU CEO Chris Shockley would lead the combined organization. Member One CEO Frank Carter would remain in an executive role.

“Becoming a larger organization with more locations, more talent, and more resources will ultimately result in greater economies of scale which is a good thing,” Shockley said in an prepared statement. “What becoming larger does not mean, however, is that we sacrifice our mission and our purpose. We would continue to invest in our members, our people, and our communities.”

The deal has already been approved by the boards of both sides. It awaits a vote from Member One members and approval from the National Credit Union Administration. If both of those are obtained, the merger is expected to close sometime this year.

The Member One brand would stick around at list in the interim as a division of Virginia Credit Union. VACU’s name will not change. The two sides said they would eventually conduct “a thoughtful, independent, and expert analysis of brand… to determine the name of the combined organization.”

Each side expects to maintain its respective headquarters: VACU’s in Chesterfield and Member One in Roanoke.

Member One was created in 1940 to serve employees of Norfolk and Western Railway. It was called Norfolk & Western Credit Union at the time, eventually changing its name in 1996.

VACU was created as State Employees’ Credit Union in 1928.

The Member One deal comes on the heels of a much smaller merger recently consummated by VACU in Charlottesville, where it absorbed the tiny Virginia Trailways FCU.

It also comes as VACU is attempting to convert from a state charter into a federally chartered credit union – the same designation held by Member One.

A VACU spokesperson said the merger with Member One is unrelated to VACU’s ongoing effort to obtain a federal charter, which awaits approval from the NCUA.

VACU said it expects that process to be completed prior to the closing of the Member One deal.