The $123 million Partnership Federal Credit Union of Arlington, Va. said Thursday it has signed a letter of intent to merge the $16 million Fannie Mae FCU of Washington.

The consolidation, which has been under study for more than a year, coincides with the retirement of Helen Bunn, Fannie Mae FCU's veteran CEO. Bunn said she will be retiring next year after 40 years of industry service.

Bunn said other Beltway credit unions were considered “but this looked like the best fit for us.”  Partnership FCU was formed in 2009 with the merger of FDIC FCU and NSF FCU.

In a formal statement, Bob Catalanotto, chairman of Fannie Mae FCU, said, “While very successful in its own right, the current and future operating environment for credit unions has prompted Fannie Mae FCU to consider alternatives, including merger, that would enhance member value and better serve its members.”

Bunn said her credit union, which was created in 1973 and now has 5,800 members, remains healthy and has been operating with 20% capital.

The planned merger is subject to approval of Fannie Mae FCU members and of regulators.

“This is up to NCUA so I can't say when we expect to receive approval,” Bunn said.