MONTPELIER, Vermont/WILLISTON, Vermont—Two Vermont credit unions have announced plans to merge into what would be a $3 billion credit union if the deal is approved.
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.
“This strategic partnership has been very purposefully formed with a cooperative mindset,” said Rob Miller, CEO of VSECU. “We recognized early on that we could accomplish more together than alone. Connecting our leading class of services, programs, and resources will give us the increased scale and capacity to amplify our like-minded mission and commitment to help people financially succeed.”
Added John Dwyer, CEO of NEFCU, “Together, our two respected and fiscally strong financial institutions can not only achieve more for our members but make a greater positive impact in our communities as well. Being able to accomplish this merger that keeps ownership, management, and resources here in Vermont is a true testament of how the partnership embodies our local values.”
Plans call for Dwyer and Miller to lead the unified credit union together, with Dwyer serving as CEO and Miller as president and chief operating officer.
New England FCU reported $28.1 million in net income for 2021, with capital of 11.9%. VSECU reported net income of $13.1 million and capital of 8.96 as of the same date. The credit unions have not yet filed forms with NCUA disclosing plans for any net worth distribution or merger-related management compensation.
‘Changing & Growing Needs’
In a statement, the credit union said the “unified credit union will position itself to meet the changing and growing needs of consumers in areas of convenience and process, with branch and digital services, financial education, access to affordable and equitable housing and financial services and environmentally conscious and sustainable banking.”
The combined credit union will have nearly 500 employees and serve more than 160,000 members, with branch services throughout Vermont and beyond.
“Together, the credit union expects to grow its consumer base, which will enable greater borrowing and saving opportunities for more Vermonters and member-owners in the financial cooperative,” the CUs said.
The agreement will retain all employees as part of the merger.