The $5 million, 1,049-member North Shore Manufacturers Federal Credit Union in Beverly, Mass., has merged with the $1 billion, 48,671-member Hanscom Federal Credit Union in Hanscom Air Force Base, Mass.
NSMFCU merged with Hanscom FCU because it was becoming increasingly difficult for the very small credit union to compete, the credit unions said. It also struggled financially over the past few years.
In 2012, the credit union posted a net income loss of $86, 925 following a loss of $11,816 in 2011, according to NCUA financial performance reports. Even though NSMFCU had a net income gain of $10,188, in 2010, it lost $85,652 in 2009. NSMFCU ended 2012 with a net worth of 7%, but it posted a ROAA of -1.59%, according to NCUA financial performance reports.
“In this time, when many smaller credit unions struggle to survive, NSMFCU had the foresight to seek out a merger partner that can continue to provide a stable, strong platform,” said Paul Marotta, chair of the board of directors for Hanscom FCU.
Hanscom FCU serves members across the country and overseas through 16 branches.
“In this competitive landscape, we wanted to ensure our members continue to receive first-rate service from a strong credit union,” said Gary Prendergast, president of NSMFCU’s board of directors.
“We chose Hanscom FCU because it offers a wide range of products and services and has an excellent reputation for high service levels. In addition, Hanscom FCU already serves employees at highly technical organizations, such as employees on Hanscom AFB and other locations, so we feel they will be a great fit for our members,” Prendergast said.
NSMFCU has served manufacturing industry employees for more than four decades. It was founded on Nov. 15, 1967 and posted $867 in deposits from 88 members by February 1968.
The credit union was opened to offer financial services to employees at Varian/Bomac, a developer and manufacturer of microwave tubes and components. It grew to serve several employer groups along Massachusetts’ north shore.
The merger took place on April 1.