The merger of small credit unions with other institutions continues in Connecticut, with two deals already this year.
Members of Simsbury-based Valley Catholic Federal Credit Union will vote next week on a proposed merger with Hartford Federal Credit Union. Valley Catholic FCU had $542,000 in assets and about 200 members as of Dec. 31, according to National Credit Union Administration data.
Hartford FCU has $154.8 million in assets and more than 17,000 members. Valley Catholic’s one office in Simsbury will close as part of the transaction. Hartford FCU has four branches in Hartford, Stafford Springs, South Windsor and West Simsbury.
Like many small credit unions, Valley Catholic FCU, whose membership includes several Catholic parishes, sought the merger to expand products and services for members.
“Due to the limited menu of services that most consumers expect from their primary financial institution and narrow field of membership, Valley Catholic Federal Credit Union has found it difficult to grow its membership and cultivate profitable relationships,” the member notice said.
The notice regarding the merger also said the credit union’s shares have declined, creating challenges in maintaining liquidity with affordable costs of funds. The credit union’s longtime manager, Vaughan Mrecki, also plans to retire, the notice said.
Another deal involved police credit unions. Waterbury Police Federal Credit Union has merged into the Police Credit Union of CT, previously called the Greater Hartford Police Federal Credit Union.
Waterbury Police FCU had $7.3 million in assets and about 1,000 members as of Dec. 31. According to the notice to members, the board of directors pursued the merger to give members access to additional products, services and locations.
The Waterbury Police FCU office is now a branch of the Police Credit Union of CT, which has another location in Hartford. Before the merger, the Police Credit Union of CT had about $33 million in assets and more than 2,100 members, according to NCUA data.
The Police Credit Union of CT said on its website that it is looking to expand across Connecticut.
“We hope to become a statewide police credit union, serving all law enforcement in the state,” the website said. “All police departments are invited to partner with us as we enable them to provide police-oriented financial services and financial literacy, using delivery channels that work for your [police department].”
Connecticut in 2021 saw Greater Watertown Federal Credit Union merge into Waterbury-based FD Community Federal Credit Union, Bethel-based Consolidated Controls Corp. Federal Credit Union join Shelton-based Mutual Security Credit Union, and East Hartford-based America’s First Network Credit Union acquire Groton Municipal Employees Federal Credit Union.
