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December 3, 2024

Small credit union serving corrections employees seeks merger to survive, broaden product offerings

Connecticut State Prison Employees Federal Credit Union’s website.
By Michael Puffer

Facing rising costs and unable to keep up with offerings at other financial institutions, the 1,241-member Connecticut State Prison Employees Federal Credit Union is seeking to merge with the larger America’s First Network Credit Union. 

But the roughly 75-year-old not-for-profit cooperative won’t disappear, stressed Christine A. Apruzese, CEO and manager of the correctional department-affiliated credit union. 

It will keep a form of its name, its three employees and its office in a rented building at the Robinson Correctional Facility in Enfield

“In order to stay in business and be able to service our credit union members…we were looking for a place where we could kind of keep our name but be a division of a greater whole,” Apruzese said. “Our members will feel we are still servicing them, but they will be able to use other branches, they will have access to better technology and better products – better loan products particularly. So, it’s going to be a win-win for everybody.”

Christine A. Apruzese

The two credit unions, on Nov. 21, filed an application with the state Department of Banking seeking to merge. As part of the application, East Hartford-based America's First plans to expand its field of membership to cover state prison employees. 

The merger also needs approval from the National Credit Union Administration and credit union members. April 1 is the target to complete the merger. 

After that, Apruzese’s institution will be known as the Connecticut State Prison Employees Credit Union, a Division of America’s First Network Credit Union. It’s a mouthful but preserves the sense of community and belonging to an employer-based credit union, she said. 

Apruzese said she will work part-time in the East Hartford headquarters of America’s First Network.

Incorporated in 1976, America’s First has 8,055 members and $85.47 million in assets, compared to $10.24 million in assets for the Connecticut State Prison Employees Federal Credit Union, according to the National Credit Union Administration. 

In addition to its East Hartford headquarters, America’s First has branches in Trumbull, Fairfield, Putnam, Groton, North Haven, Stamford and Hartford, as well as Jonesboro, Arkansas. 

Following the merger, members of the Connecticut State Prison credit union will be able to use these branches, allowing far greater flexibility. They’ll also have access to a mobile banking app, something the prison-affiliated credit union could not afford. They’ll also have access to home equity loans. 

Before, Apruzese’s credit union offered only vehicle and personal loans. 

This is the latest in a series of mergers for America’s First, which received state regulatory approval for two other deals earlier this year. 

The state Department of Banking, on Sept. 5, approved America's First Network Credit Union's bid to absorb the 308-member Arnold Bakers Employees Federal Credit Union. That Greenwich-based credit union had $1.7 million in assets.

Earlier in the year, America's First completed another merger with Northeastern Connecticut Healthcare Credit Union in Putnam.
 
“America’s First is a popular place,” Apruzese said. “A lot of smaller credit unions are looking to merge with them because we all want to keep our identity, but we want to benefit from economies of scale.”
 

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