By a narrow margin, Vermont State Employees Credit Union members approve a merger

In a good vote, Vermont State Staff Credit score Union members have authorised a merger with New England Federal Credit score Union, VSECU introduced on its web site Wednesday afternoon.

Members voted 7,622 to 7,304 to approve the merger. It would consequence within the formation of Vermont’s largest credit score union, with 165,000 members, 460 workers, 17 native branches, and $3 billion in property, in response to the announcement.

“Our membership is very engaged within the democratic course of as member-owners, evidenced by the very best credit score union voter turnout ever in our historical past,” Rob Miller, president of VSECU, mentioned in a press release. “As we glance towards the longer term, we’re excited concerning the alternative this partnership guarantees and able to take VSECU into our united future for all of our members.”

The voting came about on-line and by mail; it started Sept. 20 and concluded at a shareholder assembly on the Barre Opera Home Tuesday evening. 

One of many main opponents of the merger, VSECU’s former board chair Jerry Diamond, expressed shock at how shut the vote was and lamented that opponents didn’t have extra monetary sources to get their message out to members.

“It’s terribly disappointing,” mentioned Diamond, a former Vermont lawyer basic.

Diamond mentioned the imaginative and prescient of VSECU was to help areas outdoors of Chittenden County that haven’t benefited from explosive progress.

“The imaginative and prescient of VSECU was to help primarily these areas of the state that have been determined to develop their financial engines however maintained their senses of neighborhood,” Diamond mentioned. “That imaginative and prescient is gone.”

The 2 credit score unions will merge efficient Jan. 1, however will proceed to function individually for a number of months after that, VSECU introduced on its web site and in a press launch. Till then, members are requested to proceed to make use of the branches they’ve been utilizing. Till additional discover, members will proceed to make use of their current accounts and checks. A brand new title for the group is predicted to be introduced in 2023. 

John Dwyer, president of New England Federal Credit score Union, will turn into the chief government officer of the merged credit score union and the boss of VSECU’s Miller, who will turn into the brand new group’s president. 

“Our potential to convey two like-minded Vermont credit score unions collectively will create super alternatives, not just for our members, however workers and communities we serve,” Dwyer mentioned in a press release. 

Arthur Wolf, board chair of New England Federal Credit score Union, will turn into the board chair of the merged credit score union. 

The VSECU board of administrators had inspired members to help the merger. 

In a letter to members, the board argued that, collectively, the 2 credit score unions might higher face the challenges of an getting older Vermont inhabitants in a rural state, accelerating technological change, “environmental, financial and social change; and elevated competitors from out-of-state monetary establishments.”

The board promised extra branches and ATMs, higher data know-how, and decrease charges. It additionally promised to maintain all VSECU workers, and at their present salaries.

As evidenced by the shut vote, there was sturdy opposition. 

In a commentary on VTDigger final month, VSECU’s former chief government officer Steven Put up and former board chairs Wally Farnum, Bob Shattuck, Diamond and Kimberly Cheney argued that VSECU would lose its independence and would flip over practically $100 million in fairness raised by its members to individuals who had no function in creating it. 

The previous VSECU officers mentioned membership would now not be restricted to Vermonters.

“If the proposed VSECU merger is authorised, our statewide cooperative constructed by Vermonters, for Vermonters can be gone — ceaselessly,” they mentioned.