PenAir and Fort McClellan credit unions plan merger.
The proposed deal would unite two institutions with more than 155,000 members across three states, giving Fort McClellan members access to a broader network and expanded services.
PenAir Credit Union of Pensacola, Fla., and Fort McClellan Credit Union of Anniston, Ala., plan to merge, combining two institutions with nearly 165 years of service and expanding PenAir’s reach across Alabama, Florida and Virginia.
The proposed merger, announced Wednesday, would bring more than 155,000 members and 22 locations under PenAir, which would remain the continuing credit union. The deal still requires regulatory approval and a vote by eligible Fort McClellan members, with the legal merger anticipated in the first half of 2027.
The combination would bring together a $2.7 billion institution and a smaller, community-focused credit union with more than 70 years of history in northeast Alabama. PenAir has 140,350 members and more than $2.7 billion in assets. Fort McClellan has about 15,000 members and more than $224 million in assets.
Lee Morgan, PenAir’s president and chief executive, said the two organizations share an approach to member service and community investment.
“Fort McClellan Credit Union is an exceptional organization with a proud history of service and deep roots in the communities it serves,” Morgan said. “We both believe in putting people first, investing in our communities, and helping members improve their financial well-being.”
Fort McClellan members would gain access to PenAir’s broader branch and ATM network, digital banking tools, virtual branch and expanded business and wealth management services. The agreement also includes employee retention initiatives, expanded benefits and a special dividend for eligible Fort McClellan members before the legal merger.
Angela Smith, Fort McClellan’s president and chief executive, said the credit union sought a partner that could expand opportunities for members without losing the personal relationships it has built over decades.
Story continued below…
FREE CASE STUDIES
Borrowers expect speed. Your lending process should deliver.
Borrowers want answers fast. No waiting. No paperwork. No unnecessary back-and-forth. Manual processes and disconnected systems make lending harder, slowing decisions, adding work for staff, and creating friction at every step.
Tyfone makes lending faster and simpler with a flexible, white-label experience built around your policies. From application to funding, give borrowers a seamless experience across digital and in-branch channels.
“As we considered the future of our credit union, we were intentional about finding a partner that respected what we have built and shared our commitment to people,” Smith said. “We found that in PenAir.”
Under the proposed arrangement, Morgan would lead the combined credit union. Smith would serve as president of the Fort McClellan division during the integration period, providing continuity as the institutions bring their operations together.
A special meeting for Fort McClellan members to vote on the merger is anticipated in early 2027, though the timing depends on the regulatory process. Operational integration is expected to proceed in phases through 2027 and into 2028. Until the merger is approved and completed, the two credit unions will remain separate, and members should continue banking as usual.
The financial results of the two institutions offer a snapshot of their positions ahead of the deal. PenAir earned $6 million in the first half of 2026, compared with $6.8 million in the same period last year. Fort McClellan earned $201,000, reversing a loss of $302,000 a year earlier, according to National Credit Union Administration call report data.
The deal would also extend PenAir’s growth under Morgan, who joined the credit union in 2021. He previously led ValleyStar Credit Union and Southeastern Federal Credit Union and has more than two decades of credit union leadership experience.
For Fort McClellan, the proposed merger offers a way to retain its local identity during a period of transition while drawing on the resources of a larger institution. Whether the combination delivers on those promises will depend on regulatory approval, the member vote and how the two organizations manage integration in the years ahead.
“As we considered the future of our credit union, we were intentional about finding a partner that respected what we have built and shared our commitment to people. We found that in PenAir.”
Angela Smith
President & CEO
Fort McClellan Credit Union
Ken McCarthy is manager of marketing communications at Tyfone, where he monitors the credit union industry and contributes to conversations shaping its future. He previously covered credit unions and community banking for American Banker and S&P Global Market Intelligence. He holds a journalism degree from Point Park University and has more than 15 years of experience covering financial services. He is also the author of three literary fiction novels.
