The deal would expand Greylock Federal Credit Union into Franklin County as both institutions say the partnership strengthens community banking at a moment of heightened industry consolidation.

Greylock Federal Credit Union and Franklin First Federal Credit Union announced plans to merge, a move that would bring Franklin First’s 7,400 members and $84 million in assets under Greylock’s far larger charter while extending Greylock’s services into Franklin County.

The proposed deal comes amid an uptick in credit union consolidation nationwide.

The number of federally insured credit unions fell to 4,331 in the third quarter, down from 4,499 a year earlier, the National Credit Union Administration reported. Regulators approved 41 mergers in the third quarter alone and 121 through the first nine months of the year.

For the two Western Massachusetts institutions, leaders say the merger is a natural fit rooted in shared missions and an increasingly complex financial landscape.

“We’re excited about the possibility of a merger with Franklin First because we see community service in a similar way,” said John Bissell, Greylock’s president and chief executive. “We’re all trying to deliver value for small towns and cities across Western Mass.”

The merger, approved unanimously by both boards, still requires clearance from the NCUA. If regulators sign off, Franklin First members will vote on the proposal at their annual meeting on April 15.

In 2021, Greylock announced plans to merge with Credit Union of the Berkshires.

Franklin First President and CEO Michelle Dwyer, who initiated talks about a year ago, said the decision was not driven by financial strain. Instead, she described it as a proactive strategy to ensure long-term stability and expanded services while Franklin First remains healthy.

“It’s only going to bring positive stuff for [our members],” Dwyer said, pointing to expanded services, increased staff support and greater financial leverage that Greylock’s scale would provide.

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Greylock, based in Pittsfield, has nearly $1.7 billion in assets and 106,000 members. It earned $8 million in the first nine months of 2025, up sharply from $3.4 million a year earlier. Franklin First earned $558,000 over the same period, more than double its year-earlier total of $266,000.

Both institutions emphasize that the merger is not expected to result in job losses. Dwyer will continue to lead operations in Franklin County, and all employees will transition to roles within the combined credit union.

Franklin First currently offers core consumer services including checking, savings and personal loans. By merging with Greylock, members would gain access to a suite of business banking and lending programs, mortgage lending and financial advisory services.

Greylock also operates a full-service insurance agency, wealth management programs and a sizable business banking division — all of which would become available to Franklin First members. Members would also gain access to Greylock’s broader branch and ATM network across Berkshire County and Columbia County, N.Y.

Members would transition to Greylock’s rates and fee structures, which Dwyer said would bring “improvements” for most customers.

If approved, Franklin First would merge into Greylock’s charter and operate as a division of Greylock under its existing brand for a period after the deal closes. Its Greenfield branch and two remote ATMs would remain in operation.

The merger reflects broader pressures facing small credit unions, which often struggle with rising compliance demands, technology costs and the need for expanded services.

For Greylock and Franklin First, leaders say the combination is also about preserving community connections as the industry shifts.

With regulators reporting a fast pace of consolidation, similar deals are expected to continue reshaping the credit union landscape — including in regions like Western Massachusetts, where institutions still play a central role in local banking.