South Carolina CU Expands With Planned Bank Acquisition in West Virginia
REV Federal Credit Union expects to close its purchase of First Neighborhood Bank during the second quarter of next year.
The $1.1 billion REV Federal Credit Union in Summerville, S.C., said Tuesday it plans to welcome 7,000 customers as new members from its proposed acquisition of the $148 million First Neighborhood Bank (FNB) in Spencer, W. Va. in the second quarter of next year, pending approvals from regulators.
Financial terms of REV Federal Credit Union’s first bank purchase and assumption agreement were not disclosed.
FNB opened its doors for business in 1912 and currently operates five locations in Spencer, Ripley, and Parkersburg.
The bank’s 39 employees manage $86.1 million in loans, $134 million in deposits, and $12.7 million in capital, according to FDIC financial filings.
REV’s 236 employees operate 19 locations serving more than 67,000 members in South Carolina and North Carolina. The credit union manages $873 million in loans, $919 million in total shares and deposits, and $95.8 million in equity, according to NCUA financial performance reports.
In a prepared statement, REV Federal Credit Union President/CEO Jason Lee said the credit union’s mission is “growth with purpose.”
“This purpose is centered around member impact, social impact, economic impact, and ensuring our long-term survivability,” he said. “Last year, we had an economic impact of $3.6 billion, donated $136,000, generated over 3,500 volunteer hours, and contributed to the financial well-being of our members. Through this partnership, we want to be actively engaged in the community and create this level of impact in the Mid-Ohio Valley region.”
In a CEO profile Q&A article published by CU Times last November, Lee said he sees REV growing into a multi-billion-dollar financial institution and having a bigger regional presence.
REV expanded into the greater Rockingham and Wilmington, N.C. markets after merging with the $18.1 million Hamlet Federal Credit Union and $101 million Riegelwood Federal Credit Union in 2020.
“Expanding beyond legacy regions is a part of REV’s modern and progressive approach,” the credit union explained in prepared statement. “Our entry into the West Virginia market presents a significant opportunity to amplify REV’s presence and create a meaningful impact in a community that shares our ethos of prioritizing people over profits. We’re eager to introduce the REV brand to the Mid-Ohio Valley region, reaffirming our dedication to serving and supporting local economic development.”
Dave Righter, CEO of First Neighborhood Bank, said in a prepared statement that he is excited to bring its mission of “growth with purpose” to West Virginia and “enhance our ability to serve the financial needs of this region.”
So far this year, 15 credit union-bank acquisition agreements have been announced and one proposed merger of the $147 million Arrha Credit Union into the $378 million Pittsfield Co-operative Bank. This merger application is under review by the NCUA.
Last year, there were 11 credit union-bank buy deals announced. Five of them have been completed and six are pending. In 2022, there were 16 credit union-bank agreements. All but two were completed.