More than 99% of the shareholders who voted at its annual meeting on Thursday approved of the New Hampshire bank's purchase by the 20,000-member, $353 million GFA Federal Credit Union of Gardner, Mass.
Monadnock Community Bank had been a credit union until it converted its charter in 1996. It has since fallen upon harder economic times and had been looking for a merger partner.
Under the terms of the sale that the shareholders approved, the transaction will cost the credit union approximately $6.4 million in cash.
Monadnock had assets of approximately $82.7 million at December 31, 2011 and operates one office in Peterborough, N.H.
The Monadnock office will become a full-service GFA branch. Upon consummation of the acquisition, GFA will serve customers through a network of nine full-service branches, seven in north central Massachusetts and two in New Hampshire, with combined assets of approximately $429 million and deposits of approximately $318.3 million, the bank and credit union said in a statement.
If it meets further regulatory terms, this will be only the second time a credit union has purchased a savings bank. The $1.3 billion United Federal Credit Union in Michigan bought Indiana’s Griffith Savings Bank last year.
“We are pleased that our shareholders voted to join GFA Federal Credit Union. This new partnership will not only expand service to our customers, communities and employees but will ensure to continue the same care and commitment characteristic of Monadnock,” said William Pierce Jr., CEO of Monadnock.
“Monadnock Community Bank has served its members and community well for over 40 years,” said GFA CEO Tina Sbrega. “We look forward to building upon the tradition of customer service and community commitment and bringing greater convenience not only to Monadnock customers but to the members of GFA as well.”
Sbrega also noted that this extension of GFA’s footprint further into New Hampshire fits well with recent strategic growth initiatives.
The two institutions expect the transaction to close sometime in the fourth quarter of this year.