GARDEN CITY, N.Y.–Members of Sperry Associates FCU have approved a merger into Pentagon FCU that includes payments to the members and a multi-year deal for the current CEO.
According to the Sperry Associates FCU, more than 63% of its members voted in favor of the combination. Each SAFCU member will receive a $350 special dividend when the merger is complete. A special meeting of members was held in Sperry Associates’ office parking lot. The lone office will close when the merger is complete, although an ATM will remain on site for at least 12 months.
According to Newsday, despite the widespread support for the merger, members at the meeting questioned Sperry officials about how they can access PenFed's services once the office — which has been closed by the COVID-19 pandemic — is permanently shuttered. Newsday further reported Sperry executives have responded by pointing to PenFed's "robust" online, mobile and telephone banking options and the difficulties faced by financial institutions such as Sperry as they struggle to compete against larger competitors.
"As last night’s vote to approve the merger between Sperry and PenFed shows us, credit union members value having a well-leveraged partner that will offer them enhanced financial products and services," Sperry chief executive and vice chairman Kevin J. Healy said in an emailed statement to Newsday. "We look forward to this exciting next chapter in our institution’s history, and appreciate all of our members who expressed their vote."
The $270-million SAFCU has 38 employees and more than 16,000 members. Its FOM is open to those who live, work, worship, attend school, volunteer, or conduct business in Nassau County, New York. It reported $256,000 in net income for Q2 and net worth of 8.05%. The $26-billion PenFed, McLean, Va., has 49 branches nationally.
According to Newsday, SAFCU CEO Healy, with an annual salary of $335,956, will receive a five-year employment guarantee and an optional severance payment at a rate of 36 months' salary if he leaves PenFed within 24 months of the merger.