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. as of April 1.
The credit unions said that the difficulty for a small credit union to compete led to the merger. NSMFCU 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 ROA 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.