Credit Union Brings Financial Services To Sandy Hook

By Kaaren Valenta

Western Connecticut Federal Credit Union has become the first financial institution in Sandy Hook, moving out of its Church Hill Road location and into spacious new quarters at 15 Berkshire Road.

“We are excited,” said Ed O’Malley, president and chief executive officer. “There was no banking or credit union services in Sandy Hook  – has never been.  Up to 40 percent of our Newtown members live in the Sandy Hook area.”

Mr O’Malley said the new location, not far from by bypass road and Exit 11 of I-84, is perfect.

“We’re only three minutes away from our previous location but for most of our customers our new location will be much more convenient,” he said. “There’s the easy bypass road through Fairfield Hills. Time-wise it is the same, or faster than, going down Church Hill Road, which had become so congested that it was difficult to make left hand turns into and out of our parking lot.”

The new facility, which combines a branch office and the credit union’s administrative offices, occupies 7,500 square feet of a building built by J.P. Maguire Associates next to their company headquarters.  Charter Media’s advertising and marketing division is expected to occupy the rest of the building beginning September 1.

 “We’ve more than doubled our size,” Mr O’Malley said. “Here we have a drive-through window and, in August, will add a 24-hour ATM machine that members can access at no charge. We would have it now, but the [computer] software isn’t available until August.”

A $19 million financial institution with 5,400 members, the credit union began in 1966 when it was organized to serve doctors at Danbury Hospital. Later the staff at New Milford Hospital joined, and when it merged with the Newtown Federal Credit Union, the name was changed to WCFCU.

“We have about 1,300 members from Danbury Hospital, 250 from New Milford Hospital, and many groups of employees from the [Newtown] town government,” Mr O’Malley said. “We serve about 95 companies including Ethan Allen in Danbury, a lot of manufacturing companies in the Bridgeport and Trumbull area and PHS, one of the large HMOs.”

Persons who live or work in Newtown are eligible for membership. The credit union has applied to the regulatory agency for permission to become a full community credit union able to serve members throughout the entire Housatonic Valley.

What Is A Credit Union?

A federal credit union is a cooperative, not-for-profit financial institution organized to promote thrift and provide credit to its members. Accounts are insured up to $100,000 by the National Credit Union Administration, an agency of the federal government.

A federal credit union is member-owned and controlled through the election of a board of directors drawn from membership. Board members serve on a volunteer basis. Federal credit unions have been in existence for 65 years. There are more than 12,000 credit unions with $316 billion in assets serving 70 million people in the United States.

To join a credit union, you must be eligible for membership. Most credit unions are organized to serve people in a particular community, group or groups of employees, or members of an organization or association.

At WCFCU, savings accounts (called basic share accounts) can be opened with a minimum deposit of $1. Premier checking, with a $500 minimum balance, incurs no charges and pays an annual interest (APY) of 2.27 percent.

“We have Christmas clubs, vacation clubs, and offer money markets and mega money markets, and certificates of depositing paying up to 6.5 percent,” Mr O’Malley said. “We offer all types of mortgages, home equity loans, car loans, personal and consolidation loans, usually at better rates. Credit unions pay no corporate income taxes, because they are non-profit, and usually provide higher interest rates on savings and lower rates on loans.”

The credit union also offers direct deposit and IRA accounts.

“We offer the same financial services as banks and more beyond that in member services,” he said. “For example, we have discounts above what are regularly available for places and events in the area. People who come here are beyond being customers, they are members to us.”

Dan Kelly, chief lending officer for the credit union, said decisions about loans are made on the premises and very quickly.

“People know they will get a quick response from us,” he said. “We do a lot of pre-approvals so when a member goes to a dealership for a car, it is like being a cash buyer.”

“We even have programs on how to re-establish credit,” he said.

“Our job is to educate people to become savers, and educate people to become better borrowers,” Mr O’Malley said.

The building has a large conference room in which Mr O’Malley plans to offer community seminars and after-school seminars geared toward high school students. “We also will continue to offer programs at the [Booth] library, but this is a great location.”

The credit union sponsors blood drives each year and, each time, donates money to various organizations, such as Newtown Youth Services and the Sandy Hook Fire and Rescue Company, for every unit of blood donated.

“We really are a part of the community,” Mr Kelly said. “We get to know the people and they have confidence in you. You know what products are best for them. Privacy also is very important, and it is really the old face-to-face banking. “

The credit union expects to occupy its new location for a long time.

“To me brick and mortar is very important,” Mr O’Malley said. “You need to be in the area that you are serving – it shouldn’t be all electronic banking. We have a minimum 10 years on the lease with an option for another five years, so we plan to be here a long time.”

The new branch hours at the drive-through are Monday and Tuesday, 8:30 am to 3 pm; Wednesday 8:30 to 1; Thursday, 8:30 to 5:30; Friday, 8:30 to 4:30; Saturday 9 am to noon. The 8:30 am opening is for the drive-through only; the lobby opens at 9 am each day, and closes on Friday at 3 pm. Telephone 426-5056, 800/426-5057 (CT only); 24-hour Touch-Tone Teller, which enables customers to make transfers, withdrawals, and balance inquiries, 426-4013 or 800/294-4844.