An association that helped Nutmeg State Financial Credit Union push its field of membership outside Connecticut’s borders for the first time a little over a year ago is withdrawing from the partnership.
Nutmeg, on Dec. 6, asked the state Department of Banking for permission to amend its bylaws to remove AAA Club Alliance members from its field of membership.
Nutmeg CEO John Holt said AAA leadership notified Nutmeg of the decision to withdraw in a recent phone call. He was not informed of the precise motive for the change and described the move as “a bit disappointing and abrupt.”
“It was their decision, not ours,” Holt said. “They said they were going in a different strategic direction.”
Nutmeg began enrolling members of the AAA Club Alliance in October 2023. At the same time, Nutmeg began enrolling members and clients of the Community Impact Fund, a nonprofit providing financial education and services to economically challenged communities nationally.
Previously, the credit union offered services to the public across several Connecticut counties. By August 2024, the expansion beyond state lines had added about 1,300 new members. Today, Nutmeg has 52,570 members and $690.1 million in assets.
Holt said the association’s withdrawal will not impact the credit union. Nutmeg’s affiliation with the Community Impact Fund provides national reach, including across those areas that were serviced by the AAA Club Alliance, Holt noted.
“We don’t think this will affect Nutmeg one ounce,” Holt said. “It will not impact our growth, business or ability to offer membership to anybody who wants to join Nutmeg.”
