Saugus Federal Credit Union announces merger

SAUGUS – The Board of Directors of the Saugus Federal Credit Union announced on Wednesday that the credit union is merging with the Webster First Federal Credit Union of Worcester, effective May 31.SFCU will become a division of the Worcester County-based credit union, but its name will not change, according to a press release and interviews with credit union officials.The 7,800-plus members of the Saugus-based credit union shouldn?t expect any adjustments to service before Aug. 1.John Smolinsky, President & Chief Executive Officer of Saugus Federal Credit Union, said the merger will only benefit SFCU, its staff and customers, with little, if any negative consequences.?The merger will enhance our business and services, and it will enhance our ability to meet the needs of our members on a larger scale,” he explained.He added that it will increase SFCU?s capacity to compete with larger institutes, like Bank of America, for business.Smolinsky said Webster First Federal Credit Union is ranked in the top 2 percent of credit unions in the United States, with a good net worth ratio and return on assets.The press release stated that WFFCU has 10 branches and more than $500 million in total assets, compared to SFCU?s $61 million. With these resources, Smolinsky said the credit union can begin to offer business lending programs and other products with fewer restrictions.Besides the additional available options, like mobile banking, SFCU members shouldn?t anticipate many changes.Smolinsky said they will continue to operate as they have for 73 years, in the same buildings with the same full staff.Members can even count on the similar receipt and statement styles, as the two credit unions use the same data processing system. The federal deposit insurance and excess deposit insurance will remain unchanged as well.?Webster First Federal Credit Union will be a great fit for SFCU and we look forward to a successful merger and seamless transition,” Smolinsky noted in the press release. “They share our commitment to the community and to the members, and as such, the combined membership should be confident that this is a step in the right direction.”