Two New Hampshire credit unions, the $720 million Northeast Credit Union of Portsmouth and the $112 million Woodlands CU of Berlin, announced last week they intend to merge by year end.
The proposed consolidation which has been in the talking stage six months would combine two healthy credit unions to forge the state’s second largest credit union, with 15 branches and more than 84,000 members.
Peter Kavalauskas, president/CEO of Northeast, said the planned consolidation is subject to approval of state regulators and Woodlands members. The combination would allow Woodlands to reduce its compliance and consumer regulatory burden and offer a higher level of online tech-products on a more cost-efficient basis, he added.
“Like many credit unions of its size, Woodlands has struggled to provide its members economies of scale when it comes to offering advanced products like bill pay or mobile services and so this merger would serve to aid that effort,” said Kavalauskas.
Moreover, Northeast will be able to provide broadened business lending and investment products to the 16,000 members of Woodlands in both Maine and New Hampshire.
Kavalauskas said for years Northeast has assisted Woodlands in its indirect loan operation through a wholly owned CUSO, Indirect Auto Solutions, and the merger would enhance that program.