The $45 million Alamo Federal Credit Union became the first cooperative in San Antonio in 1930, and it will make its last stand this summer when it merges with the $19.9 billion Pentagon Federal Credit Union in Alexandria, Va.
This is PenFed's third merger deal this year and its fifth since December 2015.
When the merger is completed in early August, it will push PenFed's assets to nearly $20 billion and increase its membership by 5,241 for a total of 1,405,730 members.
In May, the $333 million Belvoir Federal Credit Union in Woodbridge, Va., consolidated with PenFed, and in February, the $65 million Fort Gordon and Community Credit Union in Fort Gordon, Ga., merged into the credit union.
The NCUA approved Alamo's merger on May 5, and Alamo members voted for the consolidation on June 9.
Like many small credit unions, Alamo was struggling financially.
According to NCUA financial performance reports, the Texas cooperative posted a total net income loss of $3.1 million from December 2011 to March 2016.
In 2012, Anna Marie Salazar, a former employee of Alamo, was banned by the NCUA after she was convicted of embezzlement. She was sentenced to 41 months in prison, five years of supervised release, and ordered to pay restitution in the amount of $725,047.33.
The credit union posted a net worth of 6.55% at the end of the first quarter, down from a net worth of 7.29% at the end of 2015's first quarter, according to NCUA financial performance reports.
Alamo also had an ROAA of -1.69% at the end of the first quarter compared to a -0.47% ROAA recorded at the end of 2015's first quarter, according to NCUA financial performance reports.
The merger will enable PenFed to expand its field of membership throughout the Greater San Antonio region. According to Alamo's call report, the region's potential membership is approximately 650,000.
In addition to a significant presence of federal employees, there is also a large military population that includes both active duty and retired service members who are eligible to join PenFed.
"San Antonio is a very attractive market with a strong military heritage, and we plan to continue exploring merger partnership opportunities in the future as we believe we can add tremendous value to all stakeholders." PenFed EVP and President of Affiliated Businesses Shashi Vohra said.
Founded in January 1930 by 12 employees of the U.S. Postal Service, the cooperative opened as the Alamo Postal Credit Union in 1931 and became San Antonio's first credit union, according to Alamo.
While it continues to serve postal workers, the multiple common bond credit union also serves employees who work in the federal, state and local governments.
"Alamo Federal Credit Union and its postal heritage are a great complement to our membership base," PenFed SVP for Mergers and Acquisitions Ricardo Chamorro said. "PenFed is pleased to form a partnership with a credit union so rooted in service to those who serve the nation as federal employees."
Alamo's 16 full-time employees and three part-time employees will become PenFed employees, and the credit union's two branches will continue to operate.
"I believe our members will notice tangible changes right away," Alamo President/CEO John Kirk said. "Our members are going to experience a new level of credit union service and value through this partnership."
Kirk will continue to serve as PenFed's regional manager, corporate development for the San Antonio market.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
