SMITHFIELD – Navigant Credit Union and Kent Hospital Federal Credit Union announced Wednesday the two institutions are merging.
“From a technical standpoint, we’re purchasing the assets of their credit union. It’s a friendly merger,” Navigant spokesman Tim Draper told Providence Business News. “Essentially, we’re absorbing all of their members into Navigant.”
Smithfield-based Navigant, Rhode Island’s second-largest credit union, has about $2.3 billion in assets; 98,000 members; and 18 branches – all in Rhode Island, said Draper, who described the merger as a “no cash transaction.”
Kent Hospital Federal Credit Union is located within Kent Hospital in Warwick. It has about 2,100 members and $13 million in assets, Draper said.
The Kent credit union services the employees, medical staff, volunteers, retirees, and immediate family members of all Care New England health care facilities.
Federal and state regulators still must approve the merger, which Draper described as a “formality.” The deal is expected to close early next year, hopefully in January, he said.
Kent Hospital Federal Credit Union will remain open. It will keep its current name until the deal closes, then it will be renamed as part of the Navigant network, Draper said.
The Kent credit union’s employees will become Navigant employees.
The merger will allow the Kent credit union’s members to have access to Navigant’s larger line of financial services, including its 18 branches, additional deposit and lending products, and digital services.
“We evaluated all possible partners, and selected Navigant Credit Union because of its excellent reputation for member service and its expansive list of products and services,” Eugene Leco, CEO of Kent Hospital Federal Credit Union, said in a statement.
“We’re excited at the opportunity to serve the members of Kent Hospital Federal Credit Union,” added Gary Furtado, Navigant’s president and CEO.
Because Navigant is a community-chartered credit union and Kent is a federal-chartered credit union, the merger must be approved by both the state Department of Business Regulation and the federal National Credit Association Administration.
Unlike banks, credit unions are nonprofit organizations that are member owned.
Scott Blake is a PBN staff writer. Email him at Blake@PBN.com.
Want to share this story? Click Here to purchase a link that allows anyone to read it on any device whether or not they are a subscriber.