First Connecticut Credit Union Merger

The Board of Directors of First Connecticut Credit Union has called a special meeting of the members of this credit union at 159 S Turnpike Road, Wallingford, CT 06492, on May 18, 2023, at 4:00pm. The purpose of this meeting is:

1. To consider and act upon a plan and proposal for merging First Connecticut Credit Union with and into Finex Credit Union (hereinafter referred to as the “Continuing Credit Union”), whereby all assets and liabilities of the First Connecticut Credit Union be merged with and into the Continuing Credit Union. All members of First Connecticut Credit Union will become members of the Continuing Credit Union and will be entitled to and will receive shares in the Continuing Credit Union for the shares they own in First Connecticut Credit Union on the effective date of the merger.
2. To ratify, confirm and approve the action of the Board of Directors in authorizing the officers of First Connecticut Credit Union, subject to the approval of members, to do all things and to execute all agreements, documents, and other papers necessary to carry out the proposed merger.

The Board of Directors of First Connecticut Credit Union encourages you to attend the meeting and vote on the proposed merger. Whether or not you expect to attend the meeting, we urge you to sign, date and promptly return the enclosed ballot to vote on the proposed merger. If you wish to submit comments about the merger to share with other members, you may submit them to the National Credit Union Administration (NCUA) at https://www.ncua.gov/support-services/credit-union-resources-expansion/credit-union-merger-resources/comments-proposed-credit-union-mergers. You may also mail your comments to: National Credit Union Administration, Office of Credit Union Resources and Expansion, 1775 Duke Street, Alexandria, VA 22314. The NCUA will post comments received from members on its website, along with the member’s name, subject to the limitations and requirements of its regulations.

Other Information Related to the Proposed Merger:

The Board of Directors has carefully evaluated and analyzed the assets and liabilities of the credit unions and the value of shares in both credit unions. The financial statements of both credit unions, as well as the projected combined financial statement of the continuing credit union, follow as separate documents. In addition, the following information applies to the proposed merger.

Reasons for merger: The Board of Directors has concluded that the proposed merger is desirable and in the best interests of members for a number of reasons, such as better pricing and services, additional products, enhanced convenience and account access and lower operating costs. The merged credit union will also achieve economies of scale which will permit it to better compete in the increasingly competitive financial services industry. By joining together, First Connecticut Credit Union and Finex Credit Union will retain their members-first philosophy and be better positioned to serve members now and into the future. As a result, the Board of Directors has determined that the opportunity to merge with Finex Credit Union is in the best interest of the members.

If the merger is approved by the members, your savings with Finex Credit Union will remain federally insured by the National Credit Union Share Insurance Fund (NCUSIF), an arm of the National Credit Union Administration, and backed by the full faith and credit of the United States Government.

Net worth: The net worth of a merging credit union at the time of a merger transfers to the continuing credit union. First Connecticut Credit Union (8.45%) has a lower net worth ratio than Finex Credit Union (9.52%).

Share adjustment or distribution: First Connecticut Credit Union will not distribute a portion of its net worth to its members in the merger. The board of directors has determined a share adjustment, or other distribution of First Connecticut Credit Union’s net worth is unnecessary because Finex Credit Union's has a higher net worth ratio than First Connecticut Credit Union. Once all one-time merger costs (including early contract termination fees, integration costs for core banking and other data systems and write-downs of fixed and other assets to be retired) are accounted for, the Continuing Credit Union’s extensive infrastructure and beneficial services and product offerings that will be available to First Connecticut Credit Union members are taken into consideration, the merger will result in a reduction to Finex Credit Union’s net worth ratio.

Locations of merging and continuing credit union: First Connecticut Credit Union’s main office at 159 S Turnpike Road, Wallingford, CT 06492 will remain open following the merger. Finex Credit Union has the following locations that will also be available to members of First Connecticut Credit Union:

• 616 Burnside Avenue, East Hartford, CT 06108
• 62 Hyde Avenue, Vernon, CT 06066
• 214 Spencer Street, Manchester, CT 06040

In addition, Finex Credit Union is a member of the nationwide CO-OP Shared Branch network that will provide members with an additional 5,000 shared branch location nationwide.

Changes to services and member benefits: The credit unions have made no post- merger plans to reduce branch facilities, ATM network access, or existing accounts and services offerings currently offered or available to First Connecticut Credit Union members. The continuing credit union may analyze the future branching and ATM network offering to members.

Member Approval and Ballot:

Please note that the proposed merger must have the approval of the majority of members who vote. In accordance with its Bylaws, First Connecticut Credit Union is conducting the member vote on the merger proposal through a mail-in, electronic or in-person ballot for the First Connecticut Credit Union members. The ballot distribution, collection, custody, and tabulation will be conducted by an independent third-party company, E Space Communications (CU Ballot). Enclosed with this Notice of Special Meeting is a Ballot for Merger Proposal. If you cannot attend the meeting or do not vote electronically, please complete the Ballot and return it using the enclosed postage paid envelope to:

To be counted, your Ballot must be received by May 18, 2023, at 4:00pm. You may also cast your vote in-person (electronically) at the meeting. Branches cannot accept ballots or mail ballots for members.

BY THE ORDER OF THE BOARD OF DIRECTORS:

Chairman
March 17, 2023

You may view the entire election packet here.