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September 17, 2024

Nutmeg State Financial Credit Union to close two branches

PHOTO | CONTRIBUTED Nutmeg State Financial Credit Union.
By Michael Puffer

Nutmeg State Financial Credit Union plans to close two of its 10 branches, largely because of the increasing use of online Department of Motor Vehicle services.

Nutmeg plans to close branches in Norwalk and Milford on Nov. 15. These sites feature a relatively small area for credit union business, with most space devoted to DMV services such as license renewals, said Nutmeg CEO John D. Holt.

But the DMV’s move to online services, accelerated by the pandemic, prompted a steep drop in credit union business at those branches, Holt said.

“Honestly, the reason we are closing these two is the change in strategy with the Department of Motor Vehicles,” Holt said. “You can do a lot of these things online and it cut our traffic in half. These branches weren’t profitable because of the change by the DMV.”

The Milford and Norwalk locations are staffed by two to five employees each, all of whom will be offered jobs at other branches, or Nutmeg’s contact center, Holt said.

Holt noted Nowalk is a bit removed from the credit union’s core “branch footprint,” and that the closing Milford branch is within a couple miles of locations the not-for-profit lender has in Shoprite supermarkets in Orange and Stratford.

The Rocky Hill-headquartered credit union, with $792.2 million in assets and 51,578 members, also has branches in Manchester, New Britain, Glastonbury, North Haven and Rocky Hill High School.

Nutmeg merged with First Bristol Federal Credit Union in June, bringing two additional branches, both in Bristol, into the fold. Those will be rebranded as Nutmeg branches early in the new year, bringing the Nutmeg branch tally back to 10, Holt said.

There are no plans to close additional branches, Holt said.

Beginning last October, Nutmeg took advantage of a change in state law to expand its membership across several states. Holt said Nutmeg has also spent heavily to increase its online banking options, and will continue to do so.

“We have branches but have put a great deal of investment into technology because our field of membership is across the country,” Holt said. 

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