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Two credit unions on opposite ends of Eastern Massachusetts plan to merge, giving the state another $1 billion credit union.
Fairhaven-based Alltrust Credit Union, which has about $300 million in assets, and Lowell-based Align Credit Union, a $740 million-asset institution, said in a joint statement yesterday that they would soon begin the due diligence process ahead of a possible merger.
Alltrust, which last year changed its name from Southern Mass. Credit Union, has 13,900 members, and Align has 28,230 members. While both institutions are now community-based, they were formed in 1922 as credit unions for New England’s telephone workers and are celebrating their 100th anniversaries.
“The joining of two telephone worker credit unions is a collaboration of shared mission and culture, and both have a passion for providing superior banking services to their members and the community,” the statement said.
The similar telephone worker backgrounds was one reason for the merger, according to the statement, as well as the credit unions’ shared values, a desire to deliver financial guidance and solutions to their members and the community, and dedication to their employees and their careers.
The credit unions also said the combined institution would have more resources to advance the products and services and also to support members and community organizations.
“We are excited to explore this potential opportunity to become stronger together,” Carmen Sylvester, Alltrust’s president and CEO, said in the statement. “Both credit unions have spent countless hours researching and discussing this possibility, always keeping in mind the impact to our members, employees, and the community. Joining with Align would allow our members to enjoy expanded products and services, additional locations, and provide us with resources to remain competitive in the marketplace.”
Carmen Sylvester
Once Alltrust and Align combine, Sylvester would become the CEO. Align’s president and CEO, Ken Del Rossi would work with Sylvester through the merger and transition process for several years, the statement said.
“The synergies between Align and Alltrust led us to this path of discovering the possibility of a merger,” Del Rossi said in the statement. “Our credit unions were each established as telephone worker credit unions and the merger would bring the amazing vision and culture of our credit unions together. Along with the shared goals, a merger would allow the combined credit union to realize economies of scale and strengthen our abilities to improve the products and services offered to our members.”
The merger would not involve any job losses, and the credit unions said they expect this type of merger to give employees further opportunities for career development and growth.
Align has eight branches in Amesbury, Danvers, Framingham, Haverhill, Lowell, Methuen, Seabrook and Wilmington. Alltrust has branches in Fairhaven, Fall River, New Bedford and Seekonk.
Alltrust and Align said they plan to begin due diligence reviews of the institutions soon and then go through the application process with the regulatory agencies. The credit unions have state charters.
Members of both credit unions must also approve the merger. The statement did not provide a time frame for completing the transaction.
Massachusetts has more than 140 credit unions. With the merger of Align and Alltrust, about 15 of those institutions will have close to or more than $1 billion in assets.
The state has about 80 credit unions with less than $100 million in assets, and at least three of those institutions are currently working on merging with larger institutions, including New Bedford-based Coastal New England Federal Credit Union merging with Taunton Federal Credit Union, East Longmeadow-based Premier Source Federal Credit Union combining with Chicopee-based Polish Credit Union, and Revere Municipal Employees Federal Credit Union merging into Lynn-based St. Jean’s Credit Union.
