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December 26, 2018

Dear Member,

On behalf of the Board of Directors of Progressive Credit Union (“Progressive”) and the Board of Directors of Pentagon Federal Credit Union (“PenFed”), we are pleased to announce that Progressive will merge into PenFed effective January 1, 2019 (“Effective Date”).

As you are aware, Progressive is facing the same challenges that continue to pressure all taxi medallion credit unions in light of the rise of Uber and other ride-sharing platforms. Although Progressive has plenty of capital to ensure its safety and soundness in the short term, the Board of Directors of Progressive decided that a merger is the best strategic option for Progressive. In today’s market of ever-changing technology, Progressive evaluated strategic possibilities to assure that you, our member, will continue to receive the full range of products and services you deserve. After considering alternatives, the Board of Progressive determined that a merger with PenFed was in the best interest of our members.

PenFed’s strong balance sheet made it the leading choice to provide Progressive the liquidity and capital needed to provide stability and support to our members. PenFed is one of the nation’s strongest credit unions. It’s America’s second-largest federal credit union, with total assets of more than $24 billion. PenFed is dedicated to serving the unique needs of their valued members and their families.

PenFed plans to support all of Progressive’s current members and current loans in the months and years ahead. Your savings will continue to be federally insured by the NCUA Share Insurance Fund to the maximum amount allowed by law. In the New Year you will have access to some of the highest savings rates in America. You could earn 2.00% annual percentage yield with PenFed’s Premium Online Savings Account, and you could earn 3.50% annual percentage yield with PenFed’s 5-Year Certificate.

Progressive’s Board of Directors has also paid special attention to the protection of its highly valued employees. We are very happy to inform you that PenFed will retain all of Progressive ‘ s staff and you will see all of the same faces when you visit our branch location after the merger. A major aspect of our decision to merge with PenFed pertains to their best-in-class employee benefits. PenFed is a national destination employer that offers competitive benefits to all of its employees, including individual and  family health, vision and dental insurance, 401K matching , life insurance, education assistance and other typical benefits.

Despite the merger, all of your savings and loan accounts and relationships with Progressive will stay intact. However, as a new member of PenFed on January 1, 2019, you will be able to take advantage of the broad range of products and services available from PenFed. Some of the additional benefits of the merger include:

  • Larger and even stronger consolidated credit union
  • Low-rates on loans including:
  • Access America Checking account with superior dividends
  • Surcharge-free ATM access at more than 87,000 locations nationwide
  • Investment services with comprehensive Retirement and Wealth Management Services
  • High-yield Money Market and IRA savings
  • Online bill payment, and much more
  • New, used and refinanced vehicle loans
  • Award-winning credit cards
  • Motorcycle, boat, and RV loans
  • Mortgages and Home Equity Products
  • 24/7 Internet account access
  • Live phone service and over 50 branch locations worldwide

Please check out www.penfed.org/progressive for further information on PenFed

I am confident you will find that this merger will be in everyone’s best interest. At Progressive we value your membership and know you will be pleased with the level of commitment, service, and value that you will receive from PenFed.

Sincerely,

Robert A. Familant Treasurer/CEO, Progressive