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PenFed CU to Merge with Alamo FCU
Monday, June 20, 2016 6:55 AM

Pentagon Federal Credit Union will purchase Alamo Federal Credit Union of San Antonio, Texas, the latest in a series of acquisitions for the $20 billion credit union in the past six months.

The $20 billion-asset PenFed announced it will acquire Alamo Federal's two branches, $46 million in assets, and entire staff. PenFed will also service Alamo's 6,000 members that include employees from the U.S. Postal Service and other federal agencies. PenFed has more than one million members globally.

The cost of the deal was not disclosed. The deal is expected to close in August.

John Kirk, chief executive of Alamo Federal, said the benefits of the merger for its members include lower interest rates on auto loans and mortgages and mobile transaction convenience.

"The possibilities for our members—when I think of this merger in terms of scale—are really quite exciting," Kirk said. "Partnering with PenFed Credit Union enables Alamo Federal Credit Union to leverage the size and scale of PenFed to do more for both its members and employees."

Kirk will become PenFed's regional manager, corporate development for the San Antonio market, where in addition to a significant presence of federal employees, there is a large military population that includes both active-duty and retired servicemembers who are eligible for PenFed membership.

James Schenck, president and CEO of PenFed, noted that "the boards and management teams of our two credit unions realized the incredible added value we could provide to our respective members by merging."