Merger into ValleyStar Approved

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Last Updated: 5.1.19

The member votes were counted this past Friday (April 26th) at 2pm EST regarding Entrust's merger into ValleyStar Credit Union. We received overwhelming support (92% approval) to move forward with the merger. After so much discernment and conversations these past months, we know the direction we are going!

You may be wondering what the next steps will be in this transition! Your Entrust Team and the ValleyStar Team are working diligently to make this process as simple as possible and minimize any disruptions of service. A comprehensive Merger Support Guide will be shared with you by early August. It will include detailed information regarding all changes to your accounts, important dates, and more. It is important that you be on the lookout for this guide and read it fully once it is received. I encourage you to refer to our FAQ below over the coming months too.

We will never forget our humble beginnings and how we have evolved over the years to be the credit union we are today. And we will never forget when our members voted "yes" to ensuring that our credit union continues to thrive as ValleyStar Credit Union in the years to come. Thank you for supporting us faithfully during this process. Please refer to our frequently asked questions for more information about the merger. Of course, we will be in touch with email and direct mail to highlight other milestones of the merger. If you have any questions, please contact us at 800.944.3622 or merger@entrustfcu.org

 

Frequently Asked Questions:

I. Next steps to merge into ValleyStar Credit Union

What kind of changes should I expect from this merger, and how will I be notified of those changes?

There will be a variety of changes that will occur around the merger. The teams at both Entrust and ValleyStar will be working diligently to make the conversion process as simple as possible for you and to avoid any disruptions in service. A comprehensive Merger Support Guide will be sent out in early August before the merger is completed, which is expected to occur around August 31, 2019, with detailed information regarding all changes to your accounts, important dates, and more.  Most, if not all, of your questions should be answered in this guide, including questions regarding your account number, routing number, debit and credit cards, loans, and much, much more.  It is very important that you be on the lookout for this guide and read it fully once it is received.  If you have additional questions after reviewing this document, we are always here to help you! You will continue to receive updates via email, direct mail, and various online channels. Please be sure to read all materials sent to you from Entrust or ValleyStar Credit Union. 

Again, the teams at both credit unions are working diligently to make the conversion process as simple as possible for you to eliminate any disruptions in service.

When will my Entrust account merge into ValleyStar?

The merger of member accounts is expected to occur around August 31, 2019.

Will I have to reapply for membership or open a new account?

No. Your membership will continue with the new organization.

Will my account number change?

Yes. A membership card with the new account information will be provided weeks before the merger is completed. You will not use this new account number until the merger is completed, which is expected to occur around August 31, 2019.

Will the routing number change to the credit union?

Yes. We will transition to ValleyStar's routing number once the merger is completed, which is expected to occur around August 31, 2019.

Will my automatic deposits and automatic transfers need to be updated with my ValleyStar account information?

Yes. All direct deposits and automatic transfers will need to be updated with your new account information. ValleyStar offers ClickSWITCH, which is a simple way to move recurring payments and direct deposits to your new ValleyStar account in as little as 10 minutes. More information will be provided about this service by mid-summer. We will help however we can to make this transition as easy as possible.

Will I need to get a new debit card?

We are working diligently with our debit card and credit card processors to ensure that our debit card numbers do not have to change, which will allow for a seamless transition for our members. More information will be available by mid-summer regarding this transition.

Will I still be able to use my Entrust paper checks?

If you have purchased your checks through Entrust, we will provide you a new box of paper checks for FREE once the merger is finalized, which is expected to occur around August 31, 2019.

What changes can I expect with my Entrust vehicle loan?

You will need to update the lienholder information with your auto insurance company once the merger is finalized, which is expected to occur around August 31, 2019. You will NOT have to update the lienholder on the vehicle title.

Who will lead ValleyStar Credit Union?

The President/CEO of ValleyStar Credit Union, Delbert Lee Morgan, will remain the President/CEO of ValleyStar Credit Union. He has been with ValleyStar since 2013 and has more than 25 years of experience in the financial industry. The President/CEO of Entrust, Lisa M. Lambrecht, will become the Chief Financial Officer of ValleyStar Credit Union.

Will Entrust be represented on ValleyStar’s Board of Directors?

Entrust’s Chair of the Board of Directors, Cheri Spence, will join ValleyStar Credit Union’s Board of Directors at the point of legal merger. Entrust’s Supervisory Committee Chair, Tyel Banks, will join ValleyStar Credit Union’s as a member at large at the point of legal merger. All ValleyStar Credit Union members, even our Entrust members merging into ValleyStar, are eligible to run for a board position at the next annual meeting.

Will Entrust Financial Credit Union’s staff remain the same?

Entrust’s entire staff will be incorporated into ValleyStar Credit Union positions throughout the organization, including in IT, Risk Management, Card Services, Lending, and Member Services. The team you have come to know and love at Entrust will continue to be in the Richmond office to serve your financial needs.

Is ValleyStar Credit Union part of the same shared branch and ATM network as Entrust? 

ValleyStar Credit Union is in the process of implementing the same shared branch and surcharge free ATM network that Entrust currently offers. It will be in place by the time the merger is complete.   So if you go to ValleyStar's website now, you will not see this information there. However, these branches and ATMs are coming. It is an important component of this merger.

Is my money safe?

As a member of Entrust Financial Credit Union, your accounts are currently insured by the National Credit Union Administration (NCUA), which is a federal insurance agency. This federal insurance agency is backed by the full faith and credit of the United States government. ValleyStar Credit Union is also insured by the NCUA.

Will I still have the same global service Entrust members are accustomed to?

Yes. Both credit unions value the needs of their members and will work to ensure that services levels are maintained or enhanced.

Will I still have the same personal service?

Yes. Both credit unions strongly believe in and value their members’ higher purpose. We will always strive to provide financial solutions to help fulfill your life’s calling.

II.  ValleyStar’s History

Who is ValleyStar Credit Union?

ValleyStar Credit Union was founded in 1953 to serve the DuPont nylon yarn plant employees in Martinsville, VA and is not affiliated with DuPont, the company, in any way.  The Credit Union started expanding into the community as the plant was slated to close. In 1998, the plant closed its doors permanently.  The Credit Union continued serving the community of Martinsville, Henry County, and the surrounding counties while working with the displaced employees of the plant. The Martinsville DuPont Employees Credit Union, Inc. name is part of their original articles of incorporation; however, it doesn’t change who they are as an organization today with their continued commitment to serve their members and communities. It’s their past that reminds them of their humble beginnings serving their members and their families.

ValleyStar Credit Union is honored to give back to each community they serve as well as non-profits.  ValleyStar supports the CMN Hospitals with its annual golf tournament raising around $25,000 annually and is committed to support the relationships of Entrust Financial Credit Union.  ValleyStar is also committed to working with local churches and schools to increase financial literacy.  ValleyStar, with the help of the Entrust Team, has already started working with local churches to provide necessary financing for current and future building programs. 

How is ValleyStar servant hearted?

We are thankful for how ValleyStar embraces the community. They exemplify the fruit of the spirit in all they do with the service they give and the organizations they support. Their website highlights several of these kind acts.

What is the Vision Statement of ValleyStar Credit Union?

Their vision is to improve the quality of life and financial well-being of their members, community, and employees.

How does ValleyStar fulfill its mission? 

ValleyStar is dedicated to its communities, financial stability, and providing responsive and professional service. They believe in supporting their communities through financial contributions, volunteerism, and sponsorships.  ValleyStar believes service to its members should be in a superior manner utilizing all necessary and available contact points and methods. The Credit Union also believes that consistent, but progressive growth in all areas of the organization will utilize its strengths and achieve an economy of scale ensuring long term stability.  Finally, ValleyStar believes in a positive, pro-growth work culture that promotes education, ethical behavior, and teamwork amongst its employees. 

What does the ValleyStar name mean?

The word “valley” represents a fertile area.  ValleyStar is dynamic, growing and helping sustain the communities it serves. The word “star” represents a fixed point in the night sky, used for navigational and directional purposes for centuries. The star also represents something of excellence.  ValleyStar guides their members and provides them outstanding service while doing so. From the peak of the star to the low of the valley, ValleyStar Credit Union serves all in between.

III. Merger Explanation

Why is Entrust Financial Credit Union merging with ValleyStar Credit Union?

Entrust is seeking a merger with ValleyStar for several reasons.  While currently financially strong, there are regulation changes coming in the next few years that will have an adverse effect on our capital position.

  • As a small financial institution with limited resources, Entrust is unable to commit to the investments necessary to advance products and services, including technology advancements and staff resources to continue the high level of service you deserve.
  • Serving our members globally with $75 million in assets and 20 employees has become increasingly difficult over the years, especially as regulatory changes have required more of our staff time.
  • Continued low interest rates and few borrowing members have strained our net income.
  • Your Board of Directors, along with the counsel of the management team, decided that it was in the best interest of the membership to proactively seek a merger partner, who would be able to serve the needs of our members for years to come, rather than potentially being forced into a merger situation. ValleyStar is working diligently with Entrust to ensure Entrust members continue to receive the high level of service they currently receive today. They are adopting many of the services Entrust provides, including our international services.

What are the benefits of a merger with ValleyStar currently?

  • Higher dividends for deposits
  • Church and business services plus lending
  • Capital to invest in enhanced products, services and technology
  • Increased presence in the community
  • Continued international services
  • Continued focus on and contributions to ministries
  • Long term financial stability
  • Dedicated ministry support in Richmond location

Will Entrust Financial Credit Union’s name change?

Yes. Entrust would be merging into ValleyStar Credit Union. ValleyStar is the larger of the two organizations, with 8 branches, $412 million in assets, and more than 43,000 members. In comparison, Entrust has 1 branch, $74 million in assets, and 10,000 members. With the difference in size, the cost to move to the Entrust name would be much greater than to move to the ValleyStar name. Additionally, the established ValleyStar Credit Union brand is well recognized in their geographic field of membership, even more so than the Entrust brand in our geographic field of membership. We are looking at ways to incorporate the Entrust brand into the account name/design and/or Ministry Division.  That is still under development currently. We don't believe the cost to rebrand the entire credit union using a hybrid name and to rebuild the brand value is in the best interest of the membership either.

Will ValleyStar continue to intentionally serve the faith community, locally and around the world?

Yes! A ministry division will be created to operate out of our current Richmond location. This division will continue our focus on the faith community we serve, international services that many rely on, and additional opportunities such as commercial and church lending.  We will be able to expand our reach to serve more of the faith community and build on all the good work that has been done over the years. 

Will ValleyStar continue to support good work happening locally and around the world?

Yes! We will continue to give of ourselves in and outside of the office, so we can selflessly serve our members and community. ValleyStar will continue making financial donations to support the good work of non-profits locally and around the world.

Currently, is Entrust financially secure and being forced into a merger?

Entrust is financially secure!  Our $74 million in assets and net worth of 8.46% are safe and secure.  In fact, our state regulators consider us well-capitalized. This merger is not being pursued because of anything wrong with our current financial position. This merger is about ensuring we are here for you - our members- in the future, whether you live locally or around the world. As a small credit union, the cost of staying on pace with enhancements to technology continues to grow. For our work to remain compliant with evolving government regulations, it requires resources and operating costs to bridge the gap. With our worldwide membership, the costs to serve you can be substantially higher than that of other credit unions our size. We know that as regulation changes continue to come over the next few years, it will substantially affect our capital. With limited capital, it will make it more difficult for us to remain relevant and serve your basic needs year after year. With all this being said, we want to ensure our heritage and your needs are met however, whenever and wherever, regardless of what the marketplace offers us.

IV. Member Voting Recap

Did the members approve the merger?

Yes. On Friday, April 26, 2019, we received 1028 votes approving the merger. We received 95 votes that did not approve the merger. We had 50 members return their ballots without voting. The merger was overwhelmingly approved.

What is the merger process?

Entrust and ValleyStar must obtain approval of you – our members - to proceed with this opportunity to merge. We anticipate the voting ballots to be mailed on Tuesday, March 12, 2019. The opportunity to vote will close at a special meeting that will be on Friday, April 26th at 2:00pm EST at the Baptist General Association of Virginia's office, which is located at 2828 Emerywood Parkway, Richmond, VA. The projected official merger date will be June 30, 2019.

Were members be required to vote on the merger?

All members had an opportunity to vote “yes” or “no” for this merger. The merger vote began on Tuesday, March 12, 2019 when a letter and ballot was mailed to the address we had on file for you. We closed voting at a Special Meeting of members that was on Friday, April 26, 2019 at 2pm EST at the Baptist General Association of Virginia's office, which is located at 2828 Emerywood Parkway, Richmond, VA 23230. One vote per member number was allowed. You were not allowed to submit your ballots to Entrust or ValleyStar employees because of laws in the Commonwealth of Virginia that govern our organizations. You had to mail your completed ballot to the firm that oversaw this process to be received by Friday, April 26, 2019 at 2pm EST: Brown, Edwards & Company, L.L.P., 319 McClanahan Street SW, Roanoke, VA 24014.

How did members currently living overseas vote?

The member vote certification process is regulated and we followed the procedures to ensure that the vote could be validated. The voting process required that we mail the ballot to each of our members at the address on our system. To assist our members who were not at their mailing address, we followed up the mailing with an email to our members on Tuesday, March 12th that offers access to a blank ballot that can be printed. Unfortunately, the certifying agent, Brown Edwards LLC, could not accept the ballot via email or fax. The ballots were not accepted by Entrust directly either. The mailed ballot had to be received by Brown Edwards LLC no later than April 26, 2019 at 2pm EST

Is member number the account number on the ballot?

Yes!

How many votes did you receiver per member number?

You received 1 vote per member number.

In the Notice of Meeting of the Members of Entrust Financial Credit Union, which is page 2 of the merger packet, it states that Entrust’ s location at 1801 Dabney Road, Richmond, VA 23230 will remain open for a minimum of 36 months. What does this mean?

The 36 months is the minimum amount of time the Richmond location will remain open, not the maximum. ValleyStar realizes the importance of this location and has no intention of closing it.  In fact, ValleyStar is creating a strategy to expand the credit union's footprint in the Richmond area.

When could the merger be final?

The legal merger date is anticipated to be June 30, 2019. Systems will transition on August 31, 2019. A Merger Support Guide will be mailed in early August with more information.

Other Resources:

Merger Package, which include letter from CEO, announcement of Special Meeting, Merger Ballot, Merger proposal and financial statements for both credit unions here. (published 3.12.19)

Update on the member vote for the merger from Lisa Lambrecht, President & CEO of Entrust Financial Credit Union here (published 10.12.18).

The "Why" Behind the Merger from Lisa Lambrecht, President & CEO here (published 9.24.18).

Read Cheri Spence, Chair of Entrust Financial Credit Union's Board, letter from September 11 about the potential merger with ValleyStar Credit Union here (published 9.11.18).

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 (rev. 5.1.19)