The board at Gloucester Municipal Credit Union in Gloucester, Mass., is seeking members’ approval to merge into Metro Credit Union, believed to be the largest state-chartered credit union in Massachusetts.
In a letter to members, Lawrence Ingersoll, board president, said due to the “increasing costs for technology, compliance and security, Gloucester Municipal Credit Union has found it difficult to comply and with the ever-increasing regulations required by various governmental agencies. In addition, with our limited assets, we are challenged to provide additional products, services, and convenience that our members want and desire.”
GMCU has assets of $2.3 million and serves just under 500 members. Metro CU has nearly 220,000 members and $2.3 billion of assets.
If the deal is approved, Gloucester Municipal’s main office in city hall will close but members will have access to more than a dozen Metro CU branches. Members will also have access to additional products and services not currently available to them, including checking accounts, certificates of deposit, investment services, auto lending, mortgages and credit cards.
Gloucester Municipal Credit Union lost over $15,000 during the first three quarters of this year after losing about $4,400 in the first three quarters of 2019. Interest income fell by 12% during that time, and the credit union has not earned any noninterest income this year. The credit union has just $327,000 in loans on the books, all in unsecured lending.
A member vote to approve the combination is scheduled for Jan. 28.
