Corporators of both of the parent companies of Newburyport Bank and Pentucket Bank Wednesday gave unanimous approvals to plans for a single mutual holding company.
Following the favorable votes, the banks are seeking regulatory approvals from the Board of Bank Incorporation and the Federal Reserve Bank, the final step in the process of combining their mutual holding companies into one. As WHAV reported in December, the holding company allows the two institutions to share costs while each bank maintains separate identities.
“We couldn’t be more pleased to have the support of our Corporators. It is a huge step forward in the exciting journey toward finalizing our single mutual holding and we are proud of their endorsement and understanding of the abundant benefits that this strategic partnership will yield for the employees, customers and communities of both independent community banks,” said Newburyport Bank President and CEO Lloyd Hamm. “We are confident that their resounding support also will speak volumes to our regulators, as we work with them through the next and final phase of the approval process.”
Pentucket Bank President and CEO Jonathan Dowst added, “Much like our board members, the corporators of both of our banks have always been integral members of the Newburyport Bank and Pentucket Bank families and we are encouraged, but not at all surprised, by their engagement in this process and the level of positive support they have offered us throughout.”
There will be no layoffs or branch closures since there is no overlap in retail banking territories. Once combined, the assets of the mutual holding company will approach $3 billion.
Officials said the abilities of Newburyport Bank and Pentucket Bank to invest and work in tandem under one holding company creates “a unique opportunity to build a dominant, sustainable, independent and full-service mutual community banking partnership in the northeastern Massachusetts and southern New Hampshire markets.
To further the independence of the two banks, each will institute charter protections to ensure each organization remains a mutual bank for many decades to come. There is also potential for other local banks to join the mutual holding company in the future.
Hamm will serve as CEO, while Dowst will serve as president and succeed Hamm upon his retirement.