The $1 billion Metro Credit Union of Chelsea is merging another Boston area credit union, the struggling $71 million Massachusetts State Employees CU.
The consolidation, approved last week by the 12,000 members of MSECU, marks the third merger deal in two years as Metro expands its reach into the Boston market.
“The merger with Massachusetts State will give us our 14th branch in our network, allowing us to expand our products and services to an important employee group,” said Robert Cashman, Metro’s president/CEO.
MSECU reported a $441,000 loss in 2011 but showed improvement in the first quarter as it eked out a small profit.
The decision by MSECU to seek a merger partner, said Cashman, reflects the ongoing economic and operational challenges faced by a number of small and mid-size credit unions, he said.
“This is another strategic partnership for us and we are open to discussing similar merger pacts with other credit unions that find themselves in the same position,” said Cashman.