MONTPELIER, VT; WILLISTON, VT— Voting is now open for the members of Vermont State Employees Credit Union (VSECU) to choose whether to approve the proposed merger with New England Federal Credit Union (NEFCU) unanimously supported by both the VSECU and NEFCU Boards of Directors. The merger between the two Vermont-based financial cooperatives will be decided by November 8 based on a majority vote of ballots cast by VSECU members.
Nearly 70,000 merger packets were mailed the week of September 20 to VSECU members including details about the proposed merger, voting instructions, and the Plan of Merger approved by the National Credit Union Administration (NCUA).
“This partnership is a unique opportunity for both credit unions,” said Spencer Newman, Board Chair at VSECU. “Both Boards support combining our strengths and resources to provide the greatest benefit for our members, ensuring sustainable growth, and keeping us as a local banking option for generations to come. Ultimately, it is up to our member-owners to decide if they agree on the future of our credit union and the greater impact we can collectively have on people’s lives.”
“It is hard to imagine a better partnership,” noted NEFCU Board Chair Art Woolf. “NEFCU and VSECU were created by Vermonters to serve Vermonters. As the state’s largest and second-largest credit unions, each brings unique and complementary strengths. NEFCU is known for accessible and innovative mortgage lending. VSECU is a leader in green energy financing. Both have shared a common mission of creating value for members, staffs, and communities. The new, stronger union will honor distinguished legacies in the best possible way: by forging a more vibrant future.”
The member vote is the culmination of a months-long process that began in February 2022, when both credit unions’ Boards of Directors unanimously supported the agreement to merge. The merger application was submitted for approval by the National Credit Union Administration (NCUA), which authorized the member vote to move forward on August 15, 2022.
VSECU members only will vote on the merger because their credit union charter would be the one to change with the merger. Members as of July 31, 2022, and who are age 16 as of November 8, 2022, are eligible to vote as soon as they receive the merger packet by mail-in paper ballot, online, or in person at VSECU’s Special Meeting to be held at the Barre Opera House on November 8 where voting will conclude. An independent third-party election services management company has been retained to manage the voting process to ensure the confidentiality and integrity of the vote and will certify the outcome by November 10.
If the merger is approved, the combined credit union will have nearly 500 employees and $3 billion in assets working for the financial needs and goals of over 165,000 members, with expanded product and branch services throughout Vermont. The merged credit union would create a new name and brand identity to reflect the partnership’s combined histories, values, and members and communities they serve. If the proposed merger is approved, VSECU members will continue to conduct their banking as usual with VSECU until a plan of conversion is finalized later in 2023.
The agreement will retain all employees as part of the merger and maintain a commitment to the communities and branch market areas currently served by NEFCU and VSECU. All branches and offices will remain in operation, and additional jobs are expected to be created. NEFCU CEO John Dwyer and VSECU CEO Robert Miller will lead the unified credit union together. Dwyer will serve as CEO and Miller will be President and Chief Operating Officer.
About NEFCU – New England Federal Credit Union was founded in 1961, originally serving IBM and UVM Medical Center employees. Today it is a $1.9B financial cooperative serving 95,000 member-owners. NEFCU is the largest credit union and residential mortgage lender in Vermont, with innovative programs and community housing partnerships and programs developed to make homeownership goals more achievable. https://www.nefcu.com/
About VSECU – Vermont State Employees Credit Union was founded in 1947, originally serving Vermont State employees. Today it is a $1.1B financial cooperative serving over 70,000 member-owners. VSECU is the second largest credit union in Vermont and is a leader in sustainable and renewable energy lending in Vermont and New England. https://www.vsecu.com/