Mass. CU Announces Plan to Merge with Bank

HAVERHILL, Mass.–The $99-million Northeast Community Credit Union here has announced plans to merge with a local bank. The bank, Haverhill Bank, is a $160-million mutual. The two institutions said plans call for completing the merger by year-end, pending a vote by members of both institutions. Current plans call for Haverhill Bank President Thomas Faulkner to remain Chairman and CEO of the merged institution; NCCU Treasurer/CEO Peter DiBenedetto is to become treasurer and president. One issue that could arise is whether NCUA’s recently unveiled rules related to charter conversions are relevant in this scenario. The bank and the credit union cited efficiencies to be gained in making the announcement, but said there are no plans for layoffs, with expectations the staff size will shrink through attrition. The credit union was founded in 1934 as Haverhill Italian-American Credit Union.