The parent holding companies of Pentucket Bank and Newburyport Bank are joining forces in such a way, leaders said, that each bank remains separate, but more efficient thanks to cost savings.
Pentucket Bank President and CEO Jonathan Dowst told WHAV Friday both institutions remain owned by their customers who will ultimately benefit.
“The point of a mutual bank—the mission of all of the mutual banks in the country—is around customers, community and employees. We make money to give it away, essentially, he said.
Since there are no shareholders to pay, he explained, added efficiencies mean the two strong banks can provide even more charitable support to their communities “for generations to come.” For the customer, nothing changes, he said.
“Our signs stay the same. The branches stay the same. We’re not doing any layoffs. We’re not closing any branches,” Dowst said.
Combined, the banks have $2.5 billion in assets.
Newburyport Bank President and CEO Lloyd Hamm, who will serve as CEO of the newly formed mutual holding company, said “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.”
Dowst will succeed Hamm when the Newburyport Bank president retires.
Pentucket Bank has six offices—three in Haverhill and one each in North Andover and Hampstead and Salem, N.H. Newburyport Bank has 11 locations combined in Massachusetts and New Hampshire.
The holding company merger remains subject to approval by corporators of both banks and regulators.