While credit union merger agreements frequently include payouts for top executives, a Vermont credit union took the rare approach of sharing a portion of its net worth with members.
The $1.1 billion Vermont Credit Union in South Burlington announced Wednesday that it completed its operational integration with the $80 million Credit Union of Vermont in Rutland. The consolidation was approved by regulators and members last year.
The combined institution's 180 employees serve more than 63,000 members across nine branches throughout Vermont, which is expected to expand its capacity to deliver financial products, digital services and community investments statewide.
To recognize members for their strong relationships over the years, the Credit Union of Vermont decided to distribute a portion of its net worth to members, according to the merger documents filed with the NCUA.
The board of directors determined a one-time special dividend of $100 to each eligible member plus an amount estimated to be between 4.25% and 4.50% of members' average balance on their shares for six months, the merger documents stated. The special dividend was a one-time capital distribution payable to eligible members in the aggregate total amount not greater than $1,250,000.
At the end of last year, Credit Union of Vermont posted a net worth of $11,028,842, according to NCUA financial performance reports.
"We built something strong independently, and together we are positioned to serve Vermont communities with even greater depth and dedication," Former Credit Union of Vermont President/CEO Bryan Kent said in a statement.
Chartered in 1958, the Credit Union of Vermont served 3,431 members.
Vermont CU President/CEO Jean Giard called the completion of the operational merger a milestone that will bring more resources to support the financial well-being of members.
Peter Strozniak can be reached at peter.strozniak@arc-network.com.
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