PENSACOLA, Fla., and ANNISTON, Ala. — PenAir Credit Union and Fort McClellan Credit Union have announced plans to merge in a transaction that would create a financial institution with nearly $3 billion in assets, more than 155,000 members and 22 locations across three states.
The proposed merger is subject to regulatory approval and a vote of eligible Fort McClellan Credit Union members. If approved, the combined organization would operate under the PenAir Credit Union name, with the legal merger expected to take place during the first half of 2027.
According to a joint announcement from the two credit unions, the merger would combine PenAir’s more than $2.7 billion in assets with Fort McClellan’s more than $224 million in assets. The resulting institution would serve members across Alabama, Florida and Virginia.
Fort McClellan posted $200,758 in mid-year net income, with net worth of 12.73%.
Leadership Comments
“Fort McClellan Credit Union is an exceptional organization with a proud history of service and deep roots in the communities it serves,” said Lee Morgan, president and CEO of PenAir Credit Union.
Morgan said discussions between the two organizations revealed similarities in their approaches to serving members and supporting their communities.
“We both believe in putting people first, investing in our communities, and helping members improve their financial well-being,” Morgan added in a statement. “This partnership allows us to build on those shared values while creating new opportunities for members, employees, and the communities we serve.”
Angela Smith, president and CEO of Fort McClellan Credit Union, said finding a merger partner that would preserve the credit union’s relationships with members and its community connections was a priority.
“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 in a statement. “We found that in PenAir.”
Benefits Outlined for Members
According to the credit unions, the proposed combination would provide Fort McClellan members with several additional products and services, including:
- Access to a larger branch and ATM network, including the MoneyPass network.
- Expanded digital banking capabilities and PenAir’s virtual branch.
- Extended call center hours, including Saturdays.
- Expanded business lending, treasury management and wealth management services.
- Access to certified financial counselors.
- Additional financial resources and continued investment in products, services and community programs.
The joint announcement also outlined commitments to Fort McClellan employees and members, including employee retention initiatives, expanded benefit opportunities and a special dividend for eligible Fort McClellan members before the legal merger.
The credit unions did not disclose the amount of the proposed dividend in the announcement.
Leadership and Merger Timeline
Under the proposed agreement, PenAir would be the continuing credit union, with Morgan remaining president and CEO of the combined organization.
Smith would become president of the Fort McClellan Division during the integration period, providing leadership and continuity for members, employees and communities served by Fort McClellan.
The organizations outlined the following anticipated timeline:
- Early 2027: A special meeting and membership vote at Fort McClellan, depending on the regulatory approval process.
- First half of 2027: Expected legal merger, contingent on regulatory and membership approvals.
- 2027-2028: Phased operational integration of the two institutions.
Fort McClellan said members will receive additional information about the vote, including eligibility requirements and voting instructions, before the meeting.
Until the merger is completed, the two institutions will continue operating separately, and members can continue using their existing accounts, cards, branches and digital banking services without taking any immediate action.
About the Credit Unions
PenAir Credit Union was established in 1936 and serves communities from Mobile, Alabama, to Tallahassee, Florida, as well as Southwest Virginia. The credit union has more than $2.7 billion in assets.
