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Massachusetts will see another credit union merger in the coming months as two institutions in the southeastern part of the state plan to combine.
Taunton Federal Credit Union plans to merge with Marion-based Commonwealth Utilities Federal Credit Union, adding a sixth location to its branch network.
CUFCU has $50.9 million in assets and about 1,600 members, according to National Credit Union Administration data. TFCU has about $277 million in assets and 17,000 members. TFCU’s field of membership includes Plymouth, Bristol and Barnstable counties and most of Rhode Island.
TFCU, which has five branches in Taunton, Middleboro and New Bedford, plans to keep CUFCU’s location on Wareham Street in Marion as a sixth branch. TFCU had acquired New Bedford-based Coastal New England Federal Credit Union last year.
TFCU will keep all CUFCU employees. According to NCUA data, the credit union has one part-time and four full-time employees.
In a letter to members, CUFCU’s board said it had evaluated strategic alternatives for a sustainable future, noting that success in its market would require continuous investment in systems, security, employees and the community.
“A combination of an eroding membership and inability to markedly attract new members, partly due to its closed charter (employees and family only), have brought into question the future viability of the institution,” the letter said. “The mission and purpose of CUFCU has always been to provide exceptional service for the membership. It was determined that a merger with a credit union of larger scope and scale located central to the membership with a similar culture and commitment to member value is the answer.”
In a document for members on its website, CUFCU said it chose TFCU as its merger partner because the institutions had complementary goals.
“They are still considered a smaller credit union in the overall credit union scale, so our members and employees will not be lost in transition,” CUFCU added.
CUFCU’s members vote on the merger on March 31.
Another planned deal in that region will see St. Anthony of New Bedford Federal Credit Union merge into Southcoast Federal Credit Union, also based in New Bedford. Other planned mergers in Massachusetts include Lynn-based St. Jean’s Credit Union’s acquisition of Greater Salem Employees Federal Credit Union, Medford-based Members Plus Credit Union’s merger with Winchester Federal Credit Union, and the combination of Merrimack Valley Credit Union with RTN Federal Credit Union, both $1 billion-asset institutions.
