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Springfield’s Arrha Credit Union will be merging into Pittsfield Cooperative Bank, and while the merger of two smaller lenders isn’t surprising, it’s not generating universally positive reviews.

Arrha has three branches in the Springfield area, including a branch in Connecticut, and has 9,000 members amounting to $138 million in assets according to NCUA data. Pittsfield CooperativeBut Bank has been in operation for over 100 years and has five branches, four of them in and around Pittsfield. Pittsfield Cooperative has approximately $381 million in total assets according to FDIC data.

“While we are unable to comment on specific bank transactions, we are always pleased to see FDIC-insured banking institutions in Massachusetts grow,” Kathleen Murphy, president and chief executive officer of the Massachusetts Bankers Association said in a statement. “Mergers and acquisitions present opportunities for banks to achieve greater economies of scale and, as banks grow, it is testament to the strength of the industry and great support our members provide to local communities throughout the Commonwealth.”

Robert Cashman, president and CEO of Chelsea-based Metro Credit Union isn’t too surprised to see more consolidation – numerous small credit unions have combined in recent years, and many mutual banks are merging their holding companies in a search for back-office savings. Still, compared to what is seen across the country it is a rare sight to see a credit union and bank merge together.

“I think there’s only been a couple over the years that that has occurred and from that perspective, it’s not something that’s usual here in Massachusetts,” he said. “You really haven’t seen that for quite some time. Across the country, there are, on a regular basis, institutions merging together, credit unions and banks, with credit unions being the survivor and that’s something that’s taking place in very strong pattern in other areas of the country. Here in Massachusetts, that’s not available. There was some legislation that was offered up to allow for that opportunity for a credit union and bank to come together with the credit union being the survivor but unfortunately, the Legislature just hasn’t found its way to move forward in modern times. The current statutes are a bit archaic, and that opportunity is not available.”

Cashman is also concerned about how Arrha Credit Union members will be affected by the move, particularly with how the structure of a credit union operates.

“I’m a little bit disappointed that the credit union has opted to merge with a bank,” he said. “I think really what has to be looked at is that the credit union structure, the retained earnings and capital of the institution that really belongs to the members, is now being transferred over to a non-credit entity that being a bank, and with that, you know, I’m disappointed to see that actually happening.”

Arrha Credit Union executives were not immediately available for comment, and did not return a message earlier this week seeking details about the merger proposal.

With the merger and acquisition market continuing to be active, and financial pressures on local lenders unlikely to abate any time soon Reading Cooperative Bank President and CEO Julie Thurlow, who’s also the current chair of the American Bankers Association, said that more mergers could be on the horizon in Massachusetts, even between credit unions and banks.

“With today’s rate environment, the pressure on earnings, escalating costs, and with regulatory pressures and costs – I would not be surprised if you see more activity in this space,” she said.