HAVERHILL, Mass. — As the $97 million Northeast Community Credit Union waits for its members to decide whether they want to merge with an area bank, those same members can use the CU's Web site to exchange opinions.
Northeast Community is a state-chartered credit union seeking to merge with Haverhill Bank, a state-chartered mutual bank that touts itself as the oldest mutual bank in the state. Both institutions have cited their similar structures, shared mutuality and a desire to grow their institutions while remaining rooted in their home communities as reasons CU members should support the merger.
Because the merger is taking place according to regulations set down by the Massachusetts Division of Banks, the NCUA has not required that Northeast follow its exact rule that would otherwise be required in a credit union to mutual savings bank charter conversion. Instead of sending members notices and disclosures about the merger balloting at 90 days, 60 days and 30 days before the special meeting date, as NCUA rules require, Northeast has only had to send notices at 90 days and 30 days, with the ballots included with the 90-day notices.
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The special meeting has been scheduled for Oct. 20 and members currently have the ballots, according to Northeast CEO Peter Di Benedetto.
Di Benedetto added that the NCUA has also mandated allowing members to share their opinions about the merger electronically and see the opinions of others.
"That was definitely an NCUA requirement," Di Benedetto said. "We haven't done anything without the OK of NCUA through our lawyers," he said. But with that caveat, Di Benedetto explained that overall the Web site (www.northeastccu.com) outreach has gone very well. "It's been very good. It has helped our members better understand the issues involved and that this is really something we are doing for the town of Haverhill."
As of press time, seven Northeast members or member households had commented on the proposed merger, some favorable and others not. Di Benedetto said that this was all of the comments received so far, though others may do so as the special meeting draws closer.
The comments have provided a window on the process the CU has used to win members over to the merger-conversion idea.
Kevin and Bernadine Gearty, both Northeast members, commented twice on the site. In their first post they expressed skepticism and disregard for the merger proposal, while in the second message they expressed support for it and described how they came to change their opinions.
"My wife Bernadine and I, Kevin Gearty, are not in favor of the proposed merger," the couple wrote in the first message. "We feel we will lose the personal attention that a Community Credit Union affords us as a loyal customer. With the new bank we would lose all of the goodwill and friendliness we fervently built with Northeast. We feel we wouldn't get the same atmosphere, customer service we have seen in the many years we have been associated with the Northeast Community Credit Union. It would be a shame to lose another community bank the caliber Northeast is!!!!!!" they concluded.
But in their second message the Geartys explained why they changed their mind.
"My original concern was that we wouldn't be dealing with familiar faces and fees, maybe the possibility of loans being sold, so I sought out some answers and have concluded my concerns were baseless," the couple wrote. "I have since learned that the same folks I have been dealing with for years are remaining with 'Haverhill Bank', the fees will remain the same and the merger would be seamless. With additional assets and opportunities offered by the merger and familiar people you place a trust in, we now are convinced the merger would be a good idea. It would also create a larger "community bank" for the people of Haverhill to enjoy as we have all enjoyed in the past with Northeast."
Not all members who wrote were convinced.
"I hate it," wrote Sue Vivier in her entry. "I am planning on taking my business elsewhere. I'm tired of finding a bank I like and having it merge with another. The new bank always changes everything for the worst and treats me as though they could care less if I stay or go. So I'm going to leave before it happens, so I don't have to go through all the [trouble] they're going to cause. This is the third time I've joined a bank or credit union and they merged with someone else! Maybe I'll just start hiding my money under my mattress!"
Di Benedetto acknowledged that some members were not going to like the merger but contended that most of them understood the benefits of keeping the credit union and bank's capital in the community rather than seeing it merge away through a partnership with a larger institution.
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