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While bank mergers continue to alter Massachusetts’ banking landscape, the state’s credit unions have also been involved in deals this year, with some of the smallest institutions combining with some of the largest.
Chelsea-based Metro Credit Union completed a merger earlier this month with Gloucester Fire Department Credit Union, giving Chelsea-based Metro its second acquisition of the year. GFDCU had about 100 members, including some who were already Metro members, and $720,000 worth of assets in savings and loan accounts, Metro said in a statement.
“I’m thrilled to welcome members of the Gloucester Fire Department Credit Union to the Metro family,” Robert Cashman, CEO and President of Metro Credit Union, said in the statement. “I encourage both existing members of GFDCU and others who are or were previously employed by the city of Gloucester to take advantage of the many opportunities Metro has to offer our members.”
Earlier this year, the $2.4 billion-asset Metro Credit Union acquired Gloucester Municipal Credit Union, bringing in close to 500 members and $2.3 million in assets.
Members of another small credit union, Stoughton-based Artmet Federal Credit Union, are scheduled to vote tomorrow on a merger with Waltham-based RTN Federal Credit Union. Artmet FCU’s membership includes employees of Artisan Metal Products Inc. The credit union has about 50 members, according to National Credit Union Administration data, and about $340,000 in assets, making it the smallest credit union in Massachusetts based on asset size.
In a letter to members, Artmet FCU’s board of directors said the proposed merger was the best way to ensure members receive high quality products and services.
“Faced with declining earnings, costs to invest in new technologies, products and services, heavier regulatory burdens, and competitive pressures, the board agreed that a merger with a larger credit union would be in the best interests of its memberships,” the letter said.
Ongoing employer sponsorship of the credit union was another factor leading to the proposed merger, as the merging reason listed with the NCUA is “lack of sponsor support.”
RTN Federal Credit Union, which is also sponsored by employer groups, has $1 billion in assets and about 42,000 members. Raytheon Technologies and Brigham and Women’s Hospital are among the employer groups. If approved, RTN and Artmet would close the deal on Dec. 1, according to the board’s letter.
Other credit union mergers completed this year included Shrewsbury-based Central One Federal Credit Union’s acquisition of Worcester-based St. Vincent Hospital Credit Union, which had about $14.6 million in assets and 1,500 members, and Pittsfield-based Greylock Federal Credit Union’s acquisition of the Credit Union of the Berkshires, which had about $20 million in assets and 1,500 members.
