ALEXANDRIA, Va. – The NCUA Board next week is expected to approve the unusual combination of a credit union with a mutual savings bank.
The rare merger of Haverhill, Mass.-based Northeast Community CU with nearby Haverhill Bank has been wallowing with both NCUA and the Massachusetts Division of Banking since last September, when members/owners of the adjacent institutions approved the deal. But both regulators still are grappling with the ramifications of the combination of a credit union with a non-credit union.
Both institutions are of similar size, around $110 million, and have had sluggish growth for several years like the one-time mill town they are situated in 25 miles north of Boston. Many local residents frequent both institutions.
Northeast Community CU last year reported net income of just $451,000 on $96.4 million, down 4% from $100.2 million in assets for year-end 2006, and down 7% from $103.6 million at year-end 2005.
The NCUA Board will vote on the merger proposal in a closed session.
