MONTPELIER, Vt.–The former CEO and two former board members of Vermont State Employees Credit Union are expressing opposition to VSECU’s plan to merge with another CU, and have created a website urging others to help stop the merger.
As CUToday.info reported here, the $1.94-billion New England FCU and the $1.088-billion Vermont State Employees CU said they are seeking to merge pending a vote by members of VSECU. The deal also still requires approval from NCUA, which is expected to take three to five months. Pending both approvals, the newly unified credit union could begin operating in early 2023, the credit unions said.
In a joint letter published on VTDigger.com, former CEO Steven D. Post, former board chair M. Jerome Diamond, and former board chair Kimberly B. Cheney, wrote that even as VSECU celebrates its 75th anniversary this year, its CEO and board have decided to “merge VSECU out of existence.”
Bigger Isn’t Better
“We’re being told that the work that has been done over the past 75 years to build VSECU into one of Vermont’s most important credit unions, should now be handed over to New England Federal Credit Union,” the letter reads. “The letter that was sent to all members to justify this action boils down to a simple ‘bigger is better’ argument.
“But, judging from all its other literature, VSECU is a thriving, vital, dynamic Vermont institution. How is it that our ‘leadership’ has decided VSECU should relinquish its unique status in Vermont and have its history and culture evaporate into thin air?”
According to its call report, VSECU reported net income of $13.1 million and capital of 8.96 as of the same date at year end 2021. New England FCU is based in Willison, Vt. The CUs are the two largest in the state.
“We believe independence is better than a merger — much better,” the letter continues. “VSECU is perfectly capable of being present for at least another 75 years, and it should be.
The ‘Big Problem’
“The problem we have, and it’s a big one, is that VSECU does not have the leadership needed to assure it is a prominent provider of cooperative financial services in Vermont, for Vermonters,” the trio continued. “In fact, as confirmed by this merger proposal, our credit union does not have the leadership that will keep VSECU in existence at all. How can this be?
“As members, we have a lot of work to do to preserve the vision of VSECU being a credit union for Vermont and all Vermonters. We are here to coordinate the work it will take to defeat this merger and over time to put effective and dedicated leadership in place at our credit union.
“We are calling on all members to make change simply by voting. Join us in the effort to preserve VSECU; first by defeating this merger proposal and then by helping to elect and hire new leadership.”
A website has been created by those opposing the merger at www.callingallmembers.org.
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