McGraw-Hill FCU Announces Plan to Merge with Pentagon FCU

EAST WINDSOR, N.J. – McGraw-Hill Federal Credit Union (MHFCU) has announced a proposed merger with Pentagon Federal Credit Union (PenFed), America’s second-largest federal credit union.

On July 30, 2018, the MHFCU Board of Directors approved a Merger Resolution authorizing MHFCU Management to seek regulatory clearance from the National Credit Union Administration (NCUA) as well as approval from MHFCU membership to merge with the $24 billion credit union.

In order for the proposed merger to be approved, a majority of the members who vote on the merger proposal must vote to approve. Voting will take place during a Special Meeting of Members on March 11, 2019 at 5 p.m. at the AMA Executive Conference Center in New York.

In a letter to its membership from Board Chair Mary Herzich, MHFCU explains that, with member value in mind, after careful consideration, the credit union believes the membership is best served by a merger with PenFed.

“In evaluating strategic alternatives, we determined a merger with a credit union of larger scope, scale and similar culture and commitment to member value is the answer,” the letter states.

First chartered in 1935, McGraw-Hill Federal Credit Union originally served employees of the McGraw-Hill Companies in New York City. Since then, the credit union has opened up membership to outside companies and now has over 120 businesses and organizations in its field of membership. MHFCU is currently the fifth largest credit union in New Jersey, with more than 22,600 members and assets in excess of $420 million.

Established in 1935, PenFed is America’s second-largest federal credit union, serving 1.7 million members worldwide with over $24 billion in assets.