WALTHAM, Mass.–Two Massachusetts credit unions have announced their intent to merge to create a $2-billion plus operation.
The $1.046 billion RTN FCU and the $1.324-billion Merrimack Valley FCU in Lawrence, Mass., said they are seeking to combine. The credit unions are located approximately 40 minutes apart in the Boston suburbs. The merger plan calls for all current RTN FCU board members to become directors on the combined board of directors.
In a statement on its website, RTN FCU said that “after carefully evaluating options and possibilities, your board of directors is convinced that the proposed merger would result in a perfect fit of organizations with matching cultures and values. Additionally, the existing areas and organizations served by the two credit unions do not compete with each other, allowing the opportunity for all to benefit.”
CEO to Become ‘Special Advisor’
The merger plan calls for RTN Treasurer & CEO Richard E. Wright to serve as a “special advisor” to MVCU President & CEO John J. Howard, who would lead the combined organization post-merger.
Founded in 1955, Merrimack Valley Credit Union primarily serves members in in Massachusetts, New Hampshire and Rhode Island and has 10 branches located in Bridgewater, Fairhaven, Haverhill, Lawrence, Methuen, North Andover, Plymouth and Quincy in Massachusetts, and Plaistow and Seabrook in New Hampshire. The combined CU would have 19 community branches and nine workplace branches.
“We are confident that the proposed merger would result in a credit union that can better achieve our primary mission, which is to be the best place that our members have ever banked, and employees have ever worked,” RTN said on its website, citing expanded products and services and 24/7 member assistance as among the additional benefits.
According to RTN, all of its employees will be retain their jobs.
The Financials
RTN FCU, which has 40,801 members, reported $1.9 million in net income and net worth of 10.28% as of Sept. 30. Merrimack Valley CU, which has 75,558 members, posted $5.069 million in net income and capital of 8.75% as of the same date.