VyStar Credit Union Confirms Plans To Merge With Local Competitor

Jacksonville, Florida-based VyStar Credit Union confirmed it’s merging with another Jacksonville financial institution, 121 Financial Credit Union. The deal is expected to close before the end of 2023, and both credit unions are committed to delivering a seamless transition for customers.

Brian Wolfburg, the president and CEO of VyStar, said the credit union is enthusiastic about welcoming 121 Financial’s employees and members since it “has a proven history as a mission-oriented credit union.” That mission aligns with VyStar’s “commitment to improving the places we call home,” Wolfburg said, adding that both financial institutions will work together to increase their contributions to bettering northeast Florida.

“Our combined partnership will expand access to best-in-class products and services to members, offer enhanced benefits and new opportunities to our employees and amplify our collective impact within the community,” stated David Marovich, president and CEO of 121 Financial, which has served northeast Florida since 1935.

During the transaction, 121 Financial’s legal counsel is Williams, Gautier, Gwynn, DeLoach, & Kiker P.A., while Nelson Mullins Riley & Scarborough LLP represents VyStar.

VyStar Remains Committed to Bettering Banking and Communities

Currently, 121 Financial has over 49,000 members and approximately $680 million in assets. So, what does the merger mean for members and staff at the credit unions? The 121 Financial members and 140 employees are invited to join the 13th-largest credit union by asset size in the United States. VyStar has 69 locations throughout north Florida and southeast Georgia to better serve its 875,000 members.

After the merger, the credit union will have more than $14 billion in assets and 920,000-plus members. In addition, both credit unions are committed to strengthening the broader community of Jacksonville by supporting local organizations, charities, and events that embody the values of their members and communities.

VyStar’s primary goal is to provide excellent service to its members to help them reach their life and financial goals. Since the credit union started at Naval Air Station Jacksonville in 1952, it has honored and supported past and present military members and their families.

It publicly launched its philanthropic arm, the VyStar Foundation, in March 2023. “We have seen the incredible power of what we can accomplish when we work together for the common good,” stated Patricia McElroy, president of the foundation, which is operating as a 501(c)(3) charitable organization. The credit union’s purpose is to do good, and it’s committed to leading by example and empowering others through collaborations, partnerships, and making strategic grants. “The spirit of philanthropy is deeply embedded in our organization. It inspires our teams in all that we do, whether serving our members, volunteering with nonprofit organizations, or donating to community partners who share in our commitment to improving the places we call home,” shared McElroy.

Wolfburg stated that the foundation’s launch “will take our philanthropic efforts to new heights. As the credit union continues to grow, the foundation will serve our new and existing communities, help us build important relationships with community leaders, and support organizations that make a difference each and every day.”

It contributed over $4.8 million to hundreds of nonprofit organizations focused on improving local communities in 2022. Similarly, in 2022, 121 Financial established the 121 Cares Foundation. It pledges to positively impact the Jacksonville region by supporting programs that bolster education, health and wellness, arts, and culture. The foundation’s mission is to help the community advance by offering resources, education, and support.

It also promotes the health and well-being of people in need and selects local causes for donations, volunteering, and sponsorship opportunities. Some of its past partners include Boys & Girls Club of Northeast Florida, Sulzbacher Center, Feeding Northeast Florida, United Way of Northeast Florida, Jacksonville Humane Society, the Jacksonville Area Sexual Minority Youth Network (JASMYN), and First Coast No More Homeless Pets. Both financial institutions are passionate about the credit union’s motto: people helping people.

In 2021, VyStar received Community Development Financial Institution certification, allowing the credit union to apply for funding in support of loan programs designed to assist the underserved, promote economic development, and support small businesses. The credit union “also plans to launch additional products and tools that will further contribute to equitable homeownership in our communities, including the program to guide members with low to moderate income to achieve mortgage readiness,” noted Jenny Vipperman, chief lending officer.

121 Financial Credit Union’s History of Success

Founded as Florida Telco Credit Union in 1935, 121 Financial took on its current name in 2010 to reflect that it provided one-to-one service to its members. Before merging with VyStar, it had eight branches throughout the Jacksonville metropolitan region.

Marovich told digital magazine Business View, “It was founded by 10 people with $155.” The credit union is recognized as one of the first in the United States after President Franklin D. Roosevelt signed the Federal Credit Union Act into law.

As for the founders, “Those 10 people were Southern Bell employees, and membership was for them, Western Electric employees, and Graybar Electric employees,” explained Marovich.

Members enjoy the credit union’s many offerings, including savings, checking, and money market accounts. It also provides certificates of deposit, credit and debit cards, loans for mortgages and vehicles, personal and home equity, auto insurance, life insurance, and financial planning, such as traditional investing and Roth IRAs.

It’s respected for being a small business leader throughout the region. “Those businesses typically have annual revenues of less than $5 million,” Marovich told Business View. He explained that 121 Financial “started the department in 2007, and over the years, it’s grown considerably.” It’s also received multiple awards from the federal government’s Small Business Financial Advocate.

During the COVID-19 pandemic, 121 Financial, in conjunction with the Small Business Financial Advocate’s Paycheck Protection Program, handled approximately $29 million in paycheck protection loans. Marovich said, “It was just shy of 500 loans, saving about 4,800 jobs in the northeast Florida communities.”

Paul Blackstone, chief operating officer of 121 Financial, explained that the pandemic taught the financial institution “the importance of making services accessible via digital platforms. This means adding things like video teller machines, which allows us to provide the same level of high-touch service, as well as a high level of safety for our employees and members.”

With such a history of success, it seems inevitable that when the merger is finalized, members of both financial institutions will enjoy an even better banking experience.