GFA FCU’s Bank Bid Advances on Shareholder Vote
The 20,000 member, $353 million GFA Federal Credit Union, headquartered in Worcester Mass., moved a bit closer to finalizing a purchase of a stock-owned thrift when a majority of the bank’s shareholders voted to approve the deal.
More than 99% of the shareholders who voted at the May 31 meeting approved the transaction. The $83 million Monadnock Community Bank had been a credit union until it converted its charter in 1996. It has since fallen upon harder economic times and has been looking for a merger partner.
Now that the vote has been passed, Bell said GFA and the bank would work with the regulators to address each of their different concerns, and he expressed confidence that each agency’s requirements would be satisfied in the end. But he also stressed that the job would likely not be easy because each regulator would have specific concerns and agendas–some of which might not even be known just yet.
“I think one thing that might have prevented these sorts of deals from going forward before might have been the uncertainty around doing them,” Bell said. “I think GFA is doing the credit union and banking industry a real service by being willing to be the first one to do this.”