NEFCU headquarters in Williston. VermontBiz photos.
Vermont Business Magazine New England Federal Credit Union (NEFCU) and Vermont State Employees Credit Union (VSECU), the two largest credit unions in the state, announced in a letter to their members today that they plan to merge. In a statement they said, "United by common beliefs, values, and vision, the combined organization will provide greater benefits to members, staff, and communities than either can independently.
NEFCU, based in Williston, is the state's largest credit union with $1.9 billion in assets and VSECU, based in Montpelier, boasts $1.07 billion in assets. In a letter to their 95,000 members, NEFCU CEO John Dwyer said, pending approval, by early 2023 the credit unions will merge under the legal entity of New England Federal Credit Union. Dwyer will remain CEO and current VSECU CEO Rob Miller will become president and COO of the merged financial institution.
They said in the statement that employment levels will not be affected. In December 2021, NEFCU reported to VermontBiz that they have 265 employees and VSECU reported 176 employees.
“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.”
John Dwyer, CEO of NEFCU, agreed. “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.”
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.
“We are very excited to blend our market strengths and differentiators to create an improved, unified experience that provides greater member value and satisfaction,” said Dwyer. “This alliance will create an exceptional option for people looking for financial services with a locally-owned, community-minded, and values-based approach to banking.”
The combined credit union will have nearly 500 employees and $3 billion in assets working for the financial needs and goals of over 160,000 members, with branch services throughout Vermont and beyond its borders. 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 agreement will retain all employees as part of the merger and a continuing commitment to the communities and branch market areas currently served by NEFCU and VSECU. Additional jobs are expected to be created in the new organization. Dwyer and 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/
VSECU Williston branch.
- NEW ENGLAND FEDERAL CREDIT UNION
- VERMONT STATE EMPLOYEES CREDIT UNION
- NORTH COUNTRY FEDERAL CREDIT UNION
- VERMONT FEDERAL CREDIT UNION
- HERITAGE FAMILY FEDERAL CREDIT UNION
- MEMBERS ADVANTAGE COMMUNITY CREDIT UNION
- ONE CREDIT UNION
- RIVER VALLEY CREDIT UNION
- GREEN MOUNTAIN CREDIT UNION
- CREDIT UNION OF VERMONT
Source: National Credit Union Service Organization, 2021
LETTER TO MEMBERS
Dear Member,
Last week, your Board of Directors and those from Vermont State Employees Credit Union (VSECU) unanimously agreed to file a merger application with our regulator, the National Credit Union Administration (NCUA). This vote followed extensive due diligence performed by each credit union.
The planned merger is contingent on regulatory approval by the NCUA, which is expected to take three to five months. Following that, an affirmative majority vote by members of VSECU is also required. Pending both approvals, in late 2022 or early 2023, the credit unions will merge under the legal entity of New England Federal Credit Union.
The boards have agreed on a new governance structure. I will remain as Chief Executive Officer and Rob Miller from VSECU will serve as President and Chief Operating Officer. We have also agreed to retain all employees.
Our two credit unions share the essential core value of enhancing members’ prosperity. We firmly believe that combining resources will help accomplish this by elevating the level of service we provide to you. In addition, the merger will give statewide access to our integrated branch network, as well as to VSECU’s successful sustainable energy loans and other offerings. Importantly, combining will better enable us to introduce new services that we believe members will demand in the future. Doing so will help us compete effectively with the larger banks that exist here or are moving into the Vermont market. And we will remain a Vermont-based, member-owned cooperative!
We do not expect that you will see any changes for several months. NCUA insurance coverage rules remain unchanged for those who are members of both credit unions until the merger is complete. As we plan our future integration, we will communicate how this may impact you.
We are strongly committed to make any changes as seamlessly as possible and to the ultimate purpose of delivering the greatest value to you in reaching your financial goals. We welcome your questions and will answer specific inquiries on our website, nefcu.com, or call our Contact Center at 800.400.8790.
Thank you,
John J. Dwyer Jr.
President and CEO
New England Federal Credit Union
NEFCU CEO John Dwyer presents a $3 million donation to VHFA Executive Director Maura Collins at the NEFCU offices in Williston in September 2021. VermontBiz photo
