Florida credit union has no plans to put the brakes on rapid growth
The $2.6 billion-asset PenAir Credit Union has pushed further into Alabama and, most recently, into Virginia, but the expansion won’t stop there.
PenAir Credit Union in Pensacola, is expanding across Florida and beyond, both organically and through M&A.
The $2.6 billion-asset credit union most recently announced that its merger with Star City Federal Credit Union has received regulatory approval, and the deal will officially take effect on May 1.
Star City has only 493 members and less than $1.6 million of assets, but the merger allows PenAir to expand into the Roanoke, Virginia, market.
“Our goal is to make a real difference in Virginia by uniting our shared values and commitment to serving and uplifting our communities,’ said Delbert Lee Morgan, President and CEO of PenAir Credit Union.
PenAir’s current footprint stretches from Mobile, Alabama, to Tallahassee, Florida.
In June, PenAir announced the expansion of its membership eligibility to include residents of Escambia and Houston counties in Alabama, increasing the total number of counties PenAir serves to 19 in the two southern states.
And there are no signs of the growth slowing.
In 2025, PenAir plans to open its Crestview Branch and begin construction on a new location in Ft. Walton Beach, Florida.
The credit union will also expand its business and commercial banking services this year by introducing a broader range of business account options.
PenAir said it is actively exploring opportunities to expand into new markets, meeting members where they are.
“As we enter 2025, I am excited for the opportunities and growth ahead. The foundation we’ve built together—grounded in trust, innovation, and service—will serve as the catalyst for our success in the new year,” Morgan said.
In January 2024, PenAir broke ground for a new 2,500-square-foot branch in Crestview, Florida, and in February of last year, it celebrated the grand opening of its 1,200-square-foot branch in Beulah, Florida.
In November, PenAir opened a new branch in Panama City.
PenAir Credit Union has 130,000 members and earned roughly $15.8 million in 2024, a 46% decrease compared to the year before, according to National Credit Union Administration call report data.
“This merger allows us to offer enhanced financial solutions while maintaining the personalized service our members have always valued. Together with PenAir, we are building a stronger credit union that prioritizes our members’ needs and the communities we serve.”
– Michael Browning
Chairman
Star City Federal Credit Union
