Bay State CU Plans Back-Door Move to Mutual Savings Bank

HAVERHILL, Mass. – A handful of Northeast Community CU’s 10,000 members could determine whether the 73-year-old credit union will merge with nearby Haverhill Bank when members vote at a special meeting next week. Instead of converting first to a mutual savings bank, then merging into the nearby MSB–as several other credit unions have done–the $110 million credit union plans to merge directly into the $130 million savings bank. As a result, the merger between the credit union and bank, allowed under state law, will be decided by the fewer than 100 members expected at next week’s meeting. State law requires that members approve mergers of state chartered credit unions. The deal is one of three pending under the state’s newly passed law allowing credit unions to convert to savings banks. The others are Community CU of Lynn ($135 million) and $115 million First Priority CU (formerly Postal Community CU). The combination of Northeast Community CU and Haverhill Bank will be the first merger of a credit union and bank.