St. Mary's Bank Credit Union and Gateway Credit Union have jointly announced today that they have executed a letter of intent for St. Mary's Bank Credit Union to acquire Gateway Credit Union. The intention is for the assets, operations and members of Gateway Credit Union to be integrated into St. Mary's Bank, with Gateway becoming part of St. Mary's Bank and operating under the St. Mary's name.

Gateway is an 8000-member credit union operating two branches with locations in Nashua and Hudson, NH. With assets of $25 million, Gateway was originally established in 1961 to serve employees of a Nashua-based company and later expanded membership to include businesses and residents of local communities. St. Mary's Bank holds the distinction as the first credit union established in the United States and is based in Manchester, NH. Founded in 1908, St. Mary's has assets in excess of $500 million, serves businesses and residents in New Hampshire and has a membership of more than 50,000.

"We enthusiastically support the proposed integration," said Rolande Suchocki, president and treasurer of Gateway. The Gateway board of directors and Suchocki initiated discussions with St. Mary's after conducting a stringent selection process. "The imperative for us was to join with an institution whose values and mission were in strong alignment with ours and, importantly, also possessed the technology, product offerings and ability to serve our membership well. With the outstanding reputation of St. Mary's Bank, their commitment to community outreach and unwavering dedication to the credit union movement, they were the clear choice for us," Suchocki added.

This transaction would be mutually beneficial. The combined institution will have seven branches, providing St. Mary's a more significant presence in Southern New Hampshire and entree to the Nashua market. Gateway members would gain access to a more substantial consumer product offering that includes free checking with free online bill pay services, instant online approval for mortgages and access to St. Mary's Financial Services, Inc., St. Mary's Insurance Services, Inc., and St. Mary's Title Services, LLC. St. Mary's extensive commercial offerings will be new to Gateway's business members. These include sophisticated online services, a full range of commercial and industrial loans, SBA loans, Business Finance Authority loans and a Credit Union at Work program.

Ronald J. Rioux, St. Mary's president and CEO said, "We look forward to welcoming all Gateway members and employees to the St. Mary's family, and we give our assurance that we will continue to honor Gateway's focus on service and tradition of remaining an integral part of the community. We will also provide an even greater range of financial product offerings."

St. Mary's Bank is a not-for-profit, financial cooperative owned by its members that is committed to the credit union philosophy of "people helping people" and to dedicating resources to the community. St. Mary's offers a full range of financial products and services for consumers and businesses. Known for competitive rates, low fees and community outreach activities, St. Mary's Bank is headquartered in Manchester, New Hampshire.

The transaction is subject to the parties entering into a definitive agreement. It will require approval by the membership of Gateway Credit Union, the National Credit Union Administration and the State of New Hampshire Banking Department. The parties anticipate a closing later this year.