SPRINGFIELD, Mass.— Arrha Credit Union is considering merging with the larger Pittsfield Cooperative Bank, according to a legal ad soliciting feedback from credit union members.
MassLive.com reported the ad says the same staff would handle members’ business, while providing “safety and stability for employees,” although the ad also states any consolidation might result in the reduction of some jobs, and there would be some disruption during the transition, according to the report.
The credit union’s ad also cites the creation of “economies of scale” as among the reasons for combining.
The credit union said it is accepting written comments through July 26, with the board to vote on the matter July 30.
‘Required Procedures’
“The Arrha Credit Union Board of Directors is following the required procedures to obtain comments from members regarding a proposed merger,” Michael S. Ostrowski, president and CEO, wrote in response to emailed questions from MassLive.com, which said Ostrowski declined to comment further.
The FDIC-Insured Pittsfield Cooperative Bank was founded in 1889 and has approximately $385-million in assets.
As of March 31, the $140.8-million Arrha Credit Union, which has approximately 9,500 members, reported a loss of $14,113 (it had positive net income of $273,135 at year-end 2023) with net worth of 9.38%.
Bank and credit union mergers are more complicated than credit union mergers with other CUs, and the report did not provide details on how the proposed deal will work.