HAVERHILL, MASS — Seeking to expand and improve upon financial services for area residents, Haverhill Bank and Northeast Community Credit Union today announced plans to merge the two institutions under the name of Haverhill Bank. The merger requires approval by members, depositors and regulators.

Under state law, the resulting institution will be chartered as a bank and will have the second largest market share in Haverhill. Haverhill Bank remains the oldest cooperative bank in Massachusetts. Haverhill Bank President Thomas R. Faulkner will serve as chairman and chief executive officer and Northeast Community Credit Union Treasurer and CEO Peter L. Di Benedetto will serve as president and chief operating officer.

“In this age of national bank mega-mergers, this union of two long-standing and respected local mutual institutions provides the greatest opportunity for improved services and choice for Greater Haverhill residents,” said Faulkner. No layoffs are proposed and all branches will remain open after the merger, he said, explaining that efficiencies will come in the areas of information technology, insurance, auditing expense and other operating expenses.

DiBenedetto said, “We’ve continued to grow steadily since 1934 while maintaining a strong capital base. When we looked at what we wanted to be able to offer our members in the future, it made sense to combine our efforts with an institution that has similar values and is also coming from a position of strength.”

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. Despite their different charters, Northeast Community Credit Union and Haverhill Bank are very similar organizations. Both are owned by their depositors or members and have deep roots in the community. “We believe the combined institution will be better able to serve the future financial needs of our customers and the entire Greater Haverhill community,” he said.

Haverhill Bank maintains offices at 180 Merrimack St., 163 South Main St. and 1094 Main St. Northeast Community Credit Union has locations at 100 Lafayette Square, 20 Cushing Avenue and Haverhill High School. Together, the institutions employ about 85 staff.

Mergers of credit unions with banks are rare, but have taken place. While the statute permitting mergers between credit unions and banks has been in effect for a number of years, management is not aware of any previous mergers of a credit union and bank in the Commonwealth of Massachusetts.

Faulkner and Di Benedetto expect the merger will be completed at the end of the year, pending receipt of regulatory approvals.