Merger of two Fairfax,Virginia credit unions will create $5 billion-asset institution

The $4.4 billion-asset Apple FCU announced plans to merge with $532 million-asset NextMark Credit Union.

The combined credit union will have more than 260,000 members and 25 branches throughout Northern Virginia, the institutions said in a press release Wednesday.

Apple Federal Credit Union’s President and CEO Andy Grimm will continue in those roles, and NextMark’s President and CEO Joe Thomas will serve in a strategic advisory role as executive president.

The credit union will do business as Apple FCU.

The companies said the partnership is rooted in shared values and a strong commitment to member service.

“[NextMark} is a financially sound credit union with a long history of exceptional service to our mutual community,” Grimm said in the press release. “The combination of both credit unions will provide scale and a powerful synergy that benefits the members of both institutions.”

The merger is set to be finalized before the end of this year.

The National Credit Union Administration approved 26 mergers during the first quarter of 2024, down from the 32 and 48 first quarter consolidations in 2023 and 2022, respectively.

Still, worries about outdated business models and disruption by fintechs and other competitors are driving more credit unions to consider mergers, industry insiders say.

On top of that, credit unions with assets of at least $500 million but less than $1 billion – such as NextMark – saw membership decline 7.4% year over year in the first quarter, according to the NCUA.

Those credit unions also reported a 4.8% decline in total loans outstanding over the year, and their net worth fell by 3.4%.

Apple earned $7.2 million in the first quarter of 2024, a 19% decrease compared with a year earlier, according to call report data from the NCUA.

NextMark earned $1.3 million in the quarter, a 23% increase, according to the NCUA.

“Our members will gain access to more than 20 new branch locations, and an expanded products suite, including business banking, and wealth management and insurance services. We are strengthening our commitment and value to members, employees, and the communities we serve.”

 – Joe Thomas
President and CEO
NextMark Credit Union

2024-06-27T10:33:10-07:00
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