HAVERHILL, Mass. -
Peter DiBenedetto, Northeast Community Credit Union treasurer and CEO, will serve as president and chief operating officer; Thomas R. Faulkner, Haverhill Bank president, will serve as chairman and CEO.
"In this age of national bank mega-mergers, this union of two long-standing and respected local institutions provides the greatest opportunity for improved services and choice for Greater Haverhill residents," Faulkner said. "We're both mutual institutions doing business in Haverhill."
Faulkner stressed that with the bank serving the community for more than 100 years, and the credit union serving since 1934, they are both familiar to the residents. "We're both in the same business and we're both facing the same issues," he said, including competition and deposit growth. "And frankly we're both competing against each other and it's counterproductive."
Faulkner said both institutions were approached by CUs and banks outside the area, but they turned them down, in favor of staying loyal to the community that they have worked with for so many years. "We know each other," he said. "It just made sense. There aren't many local viable options. They would have to go out of town and we would have to go out of town. Merging keeps the jobs in the city."
Faulkner said that no layoffs are proposed. "We're going to let attrition take care of that," he said. He expects 20% attrition in two years' time.
The new bank will have combined assets of about $260 million, deposits of $220 million and capital of $30 million, according the Haverhill Bank, thereby enabling the merged entity to offer larger loans than either of the separate institutions may now provide. Together they have about 85 employees.
"We've continued to grow steadily since 1934 while maintaining a strong capital base," DiBenedetto said. "When we looked at what we wanted to be able to offer our members in the future, it made sense to combine our efforts with an institution that has similar values and is also coming from a position of strength. It's a good marriage, a good fit."
The merger requires approval by members, depositors and regulators, including the state commissioner of banks, FDIC and NCUA. DiBenedetto expects everything to go smoothly, with the merger being completed by the end of the year. Neither DiBenedetto nor Faulkner are aware of any previous mergers of a credit union and bank in Massachusetts. "We'll be the first," DiBenedetto said.
So now, the Massachusetts Credit Union League will have one less member. "We don't like to see that happen," said Rob Kimmett, vice president of marketing for the League. "But we still have a lot of credit unions-a lot of strong ones. We do feel that credit union members are best-served by credit unions, but that said, credit unions are nothing if they're not democratic. It's the members' decision to make. The law permits this action to take place."
