Healthy or not, small CUs using mergers to find the fruits of scale
The latest small but thriving credit union seeking a merger with a much larger partner is the $82 million-asset Credit Union of Vermont.
Sub $100 million-asset credit unions continue to seek out merger partners in an effort to find the advantages of scale.
Credit unions between $50 million and $100 million of assets saw an 8% decrease in total loans outstanding over the four quarters that ended March 31. Membership also declined 8%, while net worth fell by 1%, according to the National Credit Union Administration.
Conversely, credit unions between $1 billion and $10 billion of assets reported loan growth of 5% during 2024. Membership also rose 5%, and net worth increased 9% for those credit unions.
So even some small credit unions that are not necessarily struggling are looking for the benefits that come with size.
The latest: $82 million-asset Credit Union of Vermont announced Thursday that it will merge into the $1 billion-asset Vermont Federal Credit Union in South Burlington.
And it’s not like Credit Union of Vermont was struggling and could not continue on its own.
The Rutland-based credit union earned roughly $325,500 in the first quarter of 2025 after reporting net income of $1.6 million for 2024, according to call report data from the NCUA.
So why merge?
Because together, the two credit unions can build something even better, said Bryan Kent, President and CEO of Credit Union of Vermont.
“Joining forces with Vermont Federal Credit Union represents an exciting opportunity to strengthen our mission and better serve our members. This merger ensures that our members and employees benefit from enhanced resources, innovative solutions, and a continued commitment to the values we’ve always held dear,” Kent said in the press release.
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Following the regulatory approval and a positive vote from the members, Credit Union of Vermont will continue to operate under its own identity and brand until its operations are fully integrated into Vermont Federal Credit Union’s infrastructure.
The merger’s expected legal effective date is projected to be in the fourth quarter of 2025, with the systems integration process extending into early 2026.
The merger would move Vermont FCU past North Country FCU as the third largest credit union in the state behind only EastRise Credit Union and Vermont State Employees Credit Union.
Vermont FCU has 57,000 members and eight branches while Credit Union of Vermont has 3,400 members that it serves with one office, although there are plans to develop a second branch in Rutland post-merger.
“By unifying our efforts, we can bring our creative, individual solutions to more Vermonters,” said Jean Giard, Vermont Federal Credit Union’s President and CEO.
Giard will continue to be the chief executive of the combined organization, and the companies did not disclose Kent’s future.
Vermont FCU earned nearly $2 million in the first quarter of 2025, a 9% increase compared to the year-ago quarter.
“Whether it’s buying a home, a first car, or paying for a child’s education, we are committed to helping people find a financial path forward.”
– Jean Giard
President and CEO
Vermont Federal Credit Union
