Vermont State Employees Credit Union in Montpelier has agreed to merge with New England Federal Credit Union, a deal that would create an institution with about $3 billion of assets.
The combined credit union would operate under the brand of New England FCU, which has $1.9 billion of assets. Vermont State Employees has $1.1 billion of assets.
The merger “will help us compete effectively with the larger banks that exist here or are moving into the Vermont market,” said John Dwyer Jr., president and CEO of New England Federal Credit Union, in an
Industry insiders have said many large credit union
The merger is contingent on regulatory approval by the National Credit Union Administration, a process that is expected to take three to five months. After that a majority vote by members of Vermont State Employees Credit Union is also required. The deal is expected to be completed in late 2022 or early 2023, according to the credit unions.
Dwyer would be CEO of the combined organization and Rob Miller, president and CEO of Vermont State Employees, would be its president and chief operating officer. The merger partners have agreed to retain all employees.
In a Q&A on the New England FCU website, the credit union said that although it is already the largest financial institution headquartered in Vermont, it is small compared with regional and national banks and financial services providers within the state.
“People's United has more than $60 [billion] in assets and Chase Bank has $2.87 [trillion]! We need to be able to deliver many of the things these bigger [financial institutions] do to maintain members,” the credit union said.
The combined credit union would have nearly 460 employees to support more than 160,000 members, with branch services throughout Vermont and beyond its borders.
New England FCU earned $28.1 million in 2021, an 11% increase from a year earlier, according to call report data from the NCUA. Vermont State Employees earned $13.2 million in 2021, a 94% increase, according to call report data.
