WORCESTER, Mass. -Boston-based Industrial Credit Union is merging with Webster First FCU, here, with plans calling for the $171 million Industrial to operate as a division of the $665 million Webster.
The credit unions said the merger has received all of the required approvals and is effective May 31, with the core processing systems of the two to be fully integrated by July 31.
Industrial CU's board elected to pursue the merger om Feb. 17, with a vote of the membership succeeding on March 24. Chartered on Nov. 23, 1910, ICU says it is America's oldest community charter.
The two CUs say they both are well capitalized and are "joining forces to expand upon a need for a deeper scope of products and services" in the Greater Boston area.
In its March 2015 call report, Industrial CU had $171,176 in net income during the first quarter. Its net worth ratio as of March 31 was 10.26% ("well capitalized").
The $665 million Webster First FCU reported $1.6 million in net income for Q1. Its net worth ratio as of March 31 was 19.53% ("well capitalized").
Officials of both credit unions expressed a mutual confidence in the merger, saying they believe it will be in the best interests of both institutions and will progress "smoothly and seamlessly."
"I am proud of the success ICU has achieved during the 40-plus years I have been here and I want to protect its future. I felt the best benefit to the members, staff and community would come with a merger," Roy Campana, ICU's president and CEO, said in a statement.
According to Campana, "Bringing Webster First Federal Credit Union to Boston is an absolute win-win for all. It is technologically on point, financially strong, and intellectually and professionally sophisticated."
Webster First noted it is "one of the most well-capitalized credit unions in the country," which it said has allowed it to successfully merge with several institutions in recent years.
"Adding ICU into the fold at WFFCU is an honor. With ICU, we have the opportunity to bring our affordable, consumer-friendly products and services to the Greater Boston market, along with business accounts that are globally accessible," said Michael Lussier, Webster First's president and CEO.
Webster First FCU has been serving Worcester County since 1928. It has expanded to serve Essex, Middlesex and Suffolk counties.