A majority of the membership at Merrimack Valley Credit Union on Monday voted to convert the Lawrence, Mass.-based CU from a federal charter to a state charter.
MacPage, a third-party CPA and consulting firm based in South Portland, Maine, tallied the votes and announced the final result shortly after 6:00 p.m.
“We are very excited about becoming a state-chartered credit union and want to thank our members who supported this move. It is a monumental step in the growth of Merrimack Valley Credit Union,” Peter Matthews, CEO and president of MVCU, said in a statement. “This paves the way for us to expand our field of membership and offer our services to potential members in adjoining cities and towns outside of our current field. It also allows other smaller credit unions to merge into Merrimack Valley Credit Union.”
Merrimack is the latest in a growing number of CUs in recent years to convert from federal to state charters, many out of a belief that state charters allow for increased flexibility and growth opportunities. In August of this year, Northern Federal Credit Union members
The shift away from federal charters has driven changes at the regulatory level as well, including at the National Credit Union Administration, which instituted its
The word “federal” will be removed from Merrimack's signage over the course of the next six months as the organization transitions to Merrimack Valley Credit Union.
There are no expected disruptions to member experience or changes to services at this time. Member accounts, current products and services are also not expected to be changed.
Merrimack Valley Credit Union is a $620 million institution serving members in Massachusetts and New Hampshire. For the quarter ended June 2018, the Lawrence, Mass.-based CU earned $2.3 million in net income and a 10.61 net worth ratio, making it “well-capitalized.”
