HAVERHILL, Mass. – The most recent data from NCUA and the FDICshow that Northeast Community Credit Union members could mergetheir CU into a money losing bank if they vote to approve thedeal.

|

The $96 million Northeast Community and local Haverhill bank,both state chartered, announced their intention to merge underMassachusetts regulations in July 2007. But NCUA has since requiredthe credit union to give members its mandatory charter conversiondisclosure statements and to hold another vote.

|

But in the intervening months since the two announced theirpending linkup, circumstances have changed for the bank.

|

According to FDIC records, Haverhill lost $192,000 as of the endof 2007 and saw the percentage of its loans non-current at end ofthe year rise from zero as of the end of 2006 to 2.64% as of theend of 2007. Further, the percentage of its construction anddevelopment loans not current at the end of 2006 climbed to 42.19%(up from zero the year before) and the bank's return on assetsdropped to-12% and its return on equity to -1.11%. These numbers inparticular were sharply down when compared to other Massachusettsstate-chartered banks which posted ROA for 2007 at 0.90% and ROE at10.04%.

|

By comparison, Northeast Community made over $450,000 last yearand had an ROA of 0.46%.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.