HAVERHILL, Mass. – In the first deal of its kind in Massachusetts, members of Northeast Community CU have approved the merger of the $95 million credit union into nearby Haverhill Bank.
The unusual merger could serve as a blueprint for similar deals. A merger is pending between KV FCU and Kennebec Savings Bank in Kennebec, Me.
The Northeast Community deal has been in the works for more than two years and forced NCUA to reconsider its rules governing the merger of credit unions into banks.
Both the credit union and the savings bank have reported slow growth in this troubled blue-collar community a half-hour north of Boston. Northeast Community reported net income of $185,688 for the first three quarters of the year. Haverhill Bank had a $126,000 loss for the first half of the year.
