Proposed Merger Would Create New Billion-Dollar Credit Union
Alltrust and Align, both in business for 100 years, say the due diligence process will begin within the coming weeks.
On Wednesday, their 100th anniversary, the $299 million Alltrust Credit Union and the $748 million Align Credit Union announced plans to pursue a merger that would create a new $1 billion financial cooperative in Massachusetts.
Both credit unions, formed in 1922, have shared a similar culture and mission over the years in serving the financial needs of telephone workers and their families and communities.
In a prepared statement, Carmen F. Sylvester, president/CEO of the Fairhaven-based Alltrust, said both credit unions have already spent countless hours researching and discussing this merger possibility and how it would impact members, employees and the community.
“Joining with Align would allow our members to enjoy expanded products and services and additional locations, and provide us with resources to remain competitive in the marketplace,” Sylvester said.
The due diligence process by both credit unions will launch in the coming weeks to determine whether the merger proposal should move forward.
“The synergies between Align and Alltrust led us to this path of discovering the possibility of a merger,” Ken Del Rossi, president/CEO of the Lowell-based Align, said in a prepared statement.
Following the due diligence phase, the credit unions will apply for regulatory approvals.
In addition to getting the nod from state and federal regulators, members of both credit unions must approve the proposed consolidation by a majority vote. Members are expected to vote during the latter half of this year.
If the consolidation is approved by regulators and members, the credit unions said there will be no employee layoffs. The combined credit union will have nearly 200 employees who will operate 12 branches, serving more than 42,000 members.
Sylvester would become the president/CEO of the combined credit unions. Although a post-merger title has not been confirmed for Del Rossi at this time, he will continue to co-run the credit union with Sylvester to ensure a seamless transition process, the credit unions said.
The consolidation would create the 14th credit union with $1 billion or more in assets in the Bay State, which is home to approximately 150 credit unions.