iStock illustration

Massachusetts will see more credit union mergers this year as smaller institutions continue to look to combine with larger credit unions.

Members of New Bedford-based Coastal New England Federal Credit Union voted last month to merge with Taunton Federal Credit Union. Coastal New England FCU has $19.5 million in assets and about 2,100 members, according to National Credit Union Administration data.

In a notice to members, the board of directors cited increased costs of regulatory compliance, compressed operating margins, the rising costs of cybersecurity systems and rising costs for trained staff as reasons for the merger.

“In evaluating strategic alternatives, we have determined that a merger with a credit union of larger scope, scale and similar culture and commitment to member value is the answer,” board chairman Richard Oliveira said in a letter to members. “A larger scale operation will be more efficient, while allowing us to provide more resources to support our membership’s current and future needs, as well as ensure the safety and soundness of your private data and accounts.”

The merging reason listed with the NCUA is “poor financial condition.”

Taunton Federal Credit Union has $240.7 million in assets and more than 17,000 members. All Coastal New England FCU employees will be retained, according to the member notice, and Coastal New England FCU’s office on Union Street will become a Taunton Federal Credit Union branch, making it the second Taunton FCU branch in New Bedford. The credit union also has two branches in Taunton and one in Middleboro.

Coastal New England FCU’s CEO, Tyler Dechaine, will become vice president of operations at Taunton FCU after the merger, according to Coastal New England FCU’s website. Nelson Tavares will remain Taunton FCU’s president and CEO.

Also planning are merger are East Longmeadow-based Premier Source Federal Credit Union and Chicopee-based Polish Credit Union. Premier Source FCU has $71.9 million in assets and about 4,400 members.

“Since 1941, Premier Source Federal Credit Union has taken great pride in serving our community and our membership,” Premier Source FCU CEO Bonnie Raymond said in a November statement announcing the merger. “It is not often you find organizations that support a member first philosophy and for that reason, it was in PSFCU’s best interest to merge with PNCU. We are confident this will be a seamless transition and look forward to the many opportunities this merger will provide to our community and our members.”

Polish National Credit Union has $705 million in assets and 25,000 members. Premier Source FCU’s East Longmeadow office will become a Polish National Credit Union branch. Polish National Credit Union has seven branches in Chicopee, Granby, Hampden, Southampton, Westfield and Wilbraham.

“This is a win-win situation for both PNCU and PSFCU,” Jim Kelly, CEO of Polish National Credit Union, said in November’s statement. “The joining of these two organizations makes sense for several reasons. First, we are able to grow our geographic presence and access for both members. Second, we are able to preserve the credit union culture by combining with a congenial partner, like PSFCU. And third, we are able to take advantage of the enhanced scale to focus on selecting the best systems and processes to benefit the credit union and our members going forward.”

The credit unions expect to complete the merger in the spring.

Another merger pending in Massachusetts is St. Jean’s Credit Union’s acquisition of Revere Municipal Employees Federal Credit Union. The state saw five credit union mergers in 2021.