MERRIMAC — Both the Federal Deposit Insurance Corporation (FDIC) and the Massachusetts Division of Banks have granted approval to the merger of Economy Co-operative Bank of Merrimac with Haverhill Bank.
Economy Bank's sole office in Merrimac will operate under the Haverhill Bank name beginning Jan. 3.
FDIC Assistant Regional Director Mary A. Barry provided federal approval Nov. 3, while Massachusetts Commissioner of Banks David J. Cotney gave state approval Nov. 30. Each agency solicited public comments and evaluated benefits before determining the merger is in the public interest.
"Both federal and state agencies came to the same conclusion as depositors that the consolidation will benefit customers. Some of the benefits include a larger lending limit, job retention, convenience of additional bank branches and a drive-up ATM in Merrimac," said Haverhill Bank President and CEO Thomas L. Mortimer.
Economy Co-operative Bank Vice President and CEO Gary B. Gozycki added, "Every effort is being made to ensure a smooth transition for Economy Co-operative customers."
The consolidated bank will have approximately $284 million in assets, seven banking offices, $30 million in capital and 70 employees. There will be no layoffs or office closings, officials said. The banks agreed to merge last August and depositors of both gave approval during separate votes in October. While all offices will operate under the Haverhill Bank name Jan. 3, integration of accounts will not take place until early February.
Both community banks are state-chartered co-operatives with all deposits insured in full by FDIC and Share Insurance Fund (SIF).
A depositor-owned institution, Haverhill Bank was founded in 1877 and is the oldest cooperative bank in Massachusetts. The bank's Main Office is at 180 Merrimack St. in Haverhill. Haverhill Bank also maintains offices at 163 South Main St., 1094 Main St., 100 Lafayette Square, Haverhill High School and Whittier Regional Vocational Technical High School.