Two Seacoast Region Banks to Form Mutual Holding Company
If all goes according to plan, you won't notice the combination of two Seacoast region banks.
Newburyport Bank and Pentucket Bank of Haverhill will form one single mutual holding company worth $2.5 billion but keep their respective identities, according to a statement.
"While operating under one holding company, each bank will maintain its local name, brand, headquarters, retail and lending organizations, management, charitable foundation, and Board of Directors. Corporators will serve as Corporators of the new mutual holding company," the banks said in a statement. "To further the independence of the two banks, each bank will be instituting Charter provisions to ensure each organization remains a mutual savings bank for many years to come."
Lloyd Hamm, President and CEO of Newburyport Bank, told the Newburyport Daily News the holding company will get its own name.
The changes will come in areas customers don't see, as back office operations can be consolidated and the company can invest in products and services. However, there will be no layoffs or branch closures.
“We believe independent community banks will survive, but they face strategic challenges to thrive,” Hamm said in a statement. “Sharing operational costs and resources is a way to scale and stay competitive in the marketplace. This partnership is in the best interests of our customers, employees, and communities. Both Banks will continue to have strong, independent presences as highly successful and competitive community banks.”
The regulatory process will take about 120 days, Hamm told the Newburyport Daily News.
Newburyport Bank was established in 1854 and has 11 locations in both Massachusetts and New Hampshire, including Dover, Exeter, Hampton, and Portsmouth.
Pentucket Bank was founded in 1891 and has four branches in Massachusetts and two in New Hampshire, including Hampstead and Salem.