Alltrust and Align Credit Unions plan to merge
Two credit unions on opposite ends of eastern Massachusetts plan to merge, giving the state another billion-dollar credit union.
Fairhaven-based Alltrust Credit Union, which has approximately $300 million in assets, and Lowell-based Align Credit Union, a $740 million asset institution, said in a joint statement yesterday that they would begin soon the due diligence process before 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. Although both institutions are now community-based, they were started in 1922 as credit unions for New England telephone workers and are celebrating their 100th anniversary.
“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 backgrounds of the phone workers were one of the reasons for the merger, the statement said, along with shared credit union values, a desire to provide advice and financial solutions to their members and the community, and dedication to their employees and their careers. .
Credit unions also said the combined institution would have more resources to advance products and services and also to support members and community organizations.
“We are excited to explore this potential opportunity to grow stronger together,” said Carmen Sylvester, President and CEO of Alltrust, in the statement. “Both credit unions have spent countless hours researching and discussing this possibility, always keeping in mind the impact on our members, employees and community. Joining Align would allow our members to take advantage of expanded products and services, additional locations, and provide us with resources to stay competitive in the marketplace.
Once Alltrust and Align are combined, Sylvester would become the CEO. Align President and CEO Ken Del Rossi would work with Sylvester through the merger and transition process for several years, according to the release.
“The synergies between Align and Alltrust led us to discover the possibility of a merger,” Del Rossi said in the statement. “Our credit unions were each created as credit unions for telephone workers and the merger would bring together the amazing vision and culture of our credit unions. In addition to common goals, a merger would allow the combined credit union to achieve economies of scale and strengthen our capabilities to improve the products and services offered to our members.
The merger would not result in any job losses, and the credit unions said they expect this type of merger to provide employees with new 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 institutions soon and then go through the application process with regulators. 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, approximately 15 of these institutions will have nearly 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 the Coastal New England Federal Credit Union, based in New Bedford, merging with Taunton Federal Credit Union, East Premier Source Federal Credit Union, based in Longmeadow, merging with Polish Credit Union, based in Chicopee, and Revere Municipal Employees Federal Credit Union merging with St. Jean’s Credit Union, based in Lynn.