Back at the helm of St. Mary’s Credit Union, President and CEO Jim Petkewich is looking to lean into small business loans that larger lenders overlook, aiming to keep family‑owned businesses at the core of the credit union’s focus as it wraps up a merger. The merger between Marlborough-based St. Mary’s Credit Union and Framingham-based MetroWest Community Federal Credit Union has received member and regulatory approval, according to an announcement from SMCU on Wednesday. The merger is expected to be finalized on July 1, resulting in $1.5 billion in assets under management for SMCU.Speaking to WBJ prior to the approvals, Petkewich said MetroWest’s decision to merge was based on a desire to support its members and have the capabilities to add to its technological offerings.Amid a backdrop of significant M&A activity among banks and credit unions, Petkewich said the merger was based on shared principles, rather than just growth for growth’s sake.“It's not about who can write the biggest check, but who fits best for the members of each credit union,” he said.The merger will see 12 employees join SMCU from MetroWest. Petkewich said he is happy with the firm’s current headcount of about 125 full-time employees.Petkewich returned as the firm’s leader after a stint as its interim leader from July 2024 to August 2025, before the arrival of former M&T Bank executive Grace Lee.Grace Lee, former CEO and president of St. Mary's Credit Union. PHOTO COURTESY OF ST. MARY'S CREDIT UNIONAfter about 11 months, SMCU announced in May that Petkewich would take over the President and CEO roles, with Lee remaining in an advisory role until July 1 to help finalize the merger.“Grace had a lot of energy and provided some good direction on growth,” Petkewich said. “She was very active in the communities and in leadership roles for a number of great causes. We were surprised by Grace's departure, but we’re looking forward to the future as she moves on.”Lee did not respond to a request to comment on her exit or future plans. Petkewich declined to elaborate further on Lee’s departure, but said his recent experience as the credit union’s leader made it easier to step back into the role. “The fact that it was a short time, it made the transition really seamless at this point for me,” he said. “I'm pleased and thankful to the board for honoring me with the selection and having the faith in me to be the CEO now.”Beyond the merger, Petkewich is looking to ensure SMCU remains a go-to source for small and family-owned businesses looking for support that can be tough to find elsewhere.“We've been Small Business Administration Lender of the Year for credit unions in Massachusetts for 11 years in a row, and our mission is to make that 12,” he said. “We’ve been a leader not necessarily because we write the biggest loans. It's because we write loans that a lot of banks and credit unions don't even want to look at. They might not be big enough for those banks, but we know they're really important and big for our members.”Like many smaller credit unions and banks, SMCU is continuing to attempt to balance its digital offerings with the comfort members feel in having a local branch as an option for face-to-face interactions. Petkewich said the goal for SMCU’s digital offerings is to allow members who move away from the MetroWest area to still be able to bank with SMCU.St. Mary's Credit Union in Marlborough IMAGE COURTESY OF GOOGLE MAPSWhile not directly mentioning the now-finalized merger between Marlborough-based Digital Federal Credit Union and California-based First Tech Federal Credit Union, he said the credit union is eyeing ways to fill gaps caused by consolidation in the space. “As places get acquired and local headquarters get moved out of communities, it creates a void, and it's a void that makes the role we have in the community that much more important,” Petkewich said, noting SMCU’s community focus and charitable giving. “There's incredible need out there, and as financial institutions leave the market, there's the void that's left behind.”Petkewich has longstanding connections to the communities served by SMCU. He has 40 years of experience in the region, having joined SMCU in 2006 after a decade of prior experience in the market with Framingham-based MetroWest Bank. His ties to Marlborough predate that. In the 1990s, Petkewich spent a decade as a player and then a coach with the Marlboro Shamrocks, the city’s semi-pro football team. Through his interactions with then-team owner Bob Kays, a local philanthropist and owner of Marlborough’s Prospector East Saloon, Petkewich learned a lot about the local market before ever banking in it, he said. Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries.
