Billion-Dollar Massachusetts Credit Unions Plan Merger

A proposed merger between two billion-dollar credit unions is in the works that would create the fifth-largest financial cooperative in Massachusetts.

Members of the $1 billion RTN Federal Credit Union in Waltham and the $1.3 billion Merrimack Valley Credit Union in Lawrence are expected to vote during the second quarter of 2023 on whether to approve the planned consolidation, the credit unions said.

The credit unions’ combined assets of $2.3 billion and staff of nearly 300 employees running 28 branches would serve more than 116,000 members.

MVCU President/CEO John Howard will lead the combined credit union, and RTN CEO and Treasurer Richard Wright will serve as a special advisor to Howard.

The credit unions said this merger is a proactive step by two financially sound institutions to capitalize on the respective strengths of both organizations to better meet the current and future needs of all members.

For example, the combined credit unions would be able to run a 24/7 call center, according to a Dec. 9 letter to MVCU members from Howard and Board Chair Domenic P. Mazzocco.

“It (the consolidation) will provide improved member service through a broader branch network that will extend from Southern New Hampshire through metro Boston to the South Shore and South Coast regions of Massachusetts,” Howard and Mazzocco wrote.

The combined credit unions would operate 19 retail branches, with an additional nine branches located within SEG companies.

“The mission of credit unions has never been more relevant than it is today, and this partnership will enable us to continue delivering the best experience to our members, our employer groups and the community at large far into the future,” Wright said in a prepared statement.

RTN serves more than 1,100 sponsor groups including two major employers in Massachusetts – Raytheon Technologies and Brigham and Women’s Hospital. In 2020, the $10.6 million Ocean Spray Employees Federal Credit Union merged with MVCU, expanding its field of membership to include all Ocean Spray employees and contract growers.

The credit unions noted there will be no staff layoffs. MVCU has 180 employees and RTN has 111 employees.

In addition to Howard continuing to serve as CEO, MVCU’s executive leadership would remain intact and would be joined by the RTN management team to enhance leadership capabilities and capacity, according to MVCU’s prepared statement.

MVCU did not provide specifics on how many current MVCU and RTN board members will serve on the new board post merger.

Once combined, the organization will continue to operate as MVCU, and a new brand name is expected to be rolled out in 2024.