Haverhill Bank of Haverhill and Economy Co-operative Bank of Merrimac have agreed to merge by the end of the year. The combined bank will have approximately $235 million in deposits, $30 million in capital and 70 employees.

Both are depositor-owned institutions and expect to complete the union by the end of 2011, subject to regulatory approvals, according to a statement.

Both banks are state-chartered co-operatives and will operate under the Haverhill Bank name, charter and bylaws once the merger is finalized. Economy Co-operative Bank’s Merrimac office will join Haverhill Bank’s six locations as a branch. Officials of both banks cited improved economies of scale and more efficient operations as reasons for the merger.

"I can’t think of a more logical and mutually beneficial combination of strengths as this merger. Both banks are well capitalized, operate under similar charters and are located in adjacent communities," said Haverhill Bank President and CEO Thomas L. Mortimer.

Economy Co-operative Bank Vice President and CEO Gary B. Gozycki said Economy’s depositors will enjoy many advantages. "Depositors will benefit from access to additional branch locations, a larger array of products and services and the convenience of more ATM and electronic banking options," he explained.

Gozycki, who has served Economy Co-operative Bank since 1984, plans to retire from banking upon the completion of the merger.

There will be no layoffs or office closings, officials said.

Attorney William J. Barron, a member of Economy Co-operative Bank’s board of directors, will join the Haverhill Bank board.

Haverhill Bank was born "The Haverhill Co-operative Savings Bank Fund and Loan Association" in 1877. It merged with Citizens Co-operative Bank in 1963, Whittier Co-operative Bank in 1983 and Northeast Community Credit Union in 2008. It became the oldest cooperative bank in Massachusetts in 1994 when the first cooperative bank chartered was acquired. Economy Co-operative Bank commenced operations in 1889.