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Local choice and competition at stake
By Thomas R. Faulkner
President, Haverhill Bank

There was a time the City of Haverhill was home to many locally owned banks. As in other cities across the country, the numbers of local banks – depositor-owned organizations in particular – have steadily dwindled as competitive and regulatory pressures have pushed for fewer, leaner and more efficient institutions.

At the same time, efforts to protect consumers have resulted in the additions of many costly regulatory safeguards. Further, consumers have come to expect programs suited to their individual needs and the latest technologies such as computer banking, 24-hour access to accounts and more.

All of these factors weigh heavily on the decision to merge Haverhill Bank and Northeast Community Credit Union. As important as are these considerations, only one criterion ranks higher. That is, preservation of one of the last local and mutually owned banks. Haverhill Bank remains strong and highly rated, but its continued strength depends on lowering costs and increasing efficiencies. Absent this counterbalance to the large national conglomerates, consumers risk losing choice and the other benefits of local competition.

As history tends to repeat itself, it is important to note that Haverhill Bank—the oldest cooperative bank in the Commonwealth—was created 130 years ago by local citizens precisely to ensure residents would have access to home ownership and security for their savings. The combination of Haverhill Bank and Northeast Community Credit Union ensures this legacy will continue while providing the best products and most competitive rates.

Best products become available for all
By Peter L. Di Benedetto
Treasurer and CEO, Northeast Community Credit Union

For all of the reasons Mr. Faulkner lists, Northeast Community Credit Union set out to seek a partner to help ensure it will always be able to fulfill its obligations to members and the community as a whole.

Northeast Community Credit Union considered how it might partner with another credit union to gain necessary efficiencies and provide a greater array of services. In the end, however, it was clear most other potential partners would move the organization’s capital—earned and grown locally—to another community. Both Northeast Community Credit Union and Haverhill Bank are owned by the very people who entrust their savings to the institutions. As local owners, they have a vested interest in identifying community needs and supporting the area’s civic organizations and charities that meet these interests. Laws require that the organization that emerges after consolidation be called a bank. No matter the name, the best products and services of each will become available to all. The boards of directors of both organizations will be combined, ensuring the diversity of community voices will continue to be represented.

The new bank will have combined assets of approximately $260 million, deposits of $220 million and capital of $30 million, thereby enabling the ability to offer larger loans than either of the separate institutions may now provide. Moreover, both organizations already share many of the same vendors and systems, allowing significant cost savings while making certain a smooth transition.

Northeast Community Credit Union has grown steadily since 1934 while maintaining a strong capital base. When looking ahead to the kinds of new offerings that would benefit the community, it made sense to combine efforts with an institution that has similar values and is also coming from a position of strength.