iStock illustration
Two of Massachusetts’ $1 billion-asset credit unions plan to merge, creating one of the state’s largest credit unions with a footprint spanning Eastern Massachusetts and into Worcester and New Hampshire.
Waltham-based RTN Federal Credit Union has agreed to merge into Lawrence-based Merrimack Valley Credit Union, MVCU said on its website.
RTN Federal Credit Union had $1.04 billion in assets and 40,800 members as of Sept. 30, according to National Credit Union Administration data. Sponsored by more than 1,100 groups, RTN is the credit union for Raytheon Technologies and Brigham and Women’s Hospital.
The $1.32 billion-asset MVCU has more than 75,000 members. The combined organization’s $2.3 billion in assets would make it the fifth-largest Massachusetts-based credit union.
MVCU said on its website that the two institutions have “matching cultures and values.”
“The challenges faced by financial institutions today – particularly credit unions – continues to demand that we scale our operations to remain competitive and financially sound far into the future,” MVCU said. “This proactive step by two financially sound institutions will capitalize on the respective strengths of both organizations to better meet the current and future needs of all members.”
MVCU added that the merger would provide synergy and cost-savings in many areas. The credit union also noted that its footprint does not overlap with RTN’s
“We believe that RTN Federal Credit Union is the ideal partner for us to serve our members, filling the gap between our branches in the Merrimack Valley and those south of Boston,” MVCU said.
The deal will give MVCU branches in Worcester and Greater Boston. The combined organization will have 19 retail branches and nine branches located within some of RTN’s employer groups. MVCU currently has 10 branches: four in Merrimack Valley, two in New Hampshire and four south of Boston ranging from Quincy to Fairhaven. RTN’s branch network includes locations in Worcester, Marlborough, Dorchester, Amesbury, Danvers, Tewksbury, Brookline and Waltham.
The combined institution will operate as Merrimack Valley Credit Union initially, and then a new name will be introduced in 2024, MVCU said on its website. Branches south of Boston that were acquired in 2019 currently operate as Bridgewater Credit Union, A Division of Merrimack Valley Credit Union.
MVCU President and CEO John Howard will lead the combined organization. MVCU said the merger will result in no layoffs, and all RTN employees will be offered a job when merger is completed.
The deal, which the credit unions expect to close in the second quarter of 2023, is subject to regulatory approval and approval by members of both credit unions.
