The parent companies of Pentucket Bank and Newburyport Bank are now operating as one, while the local banks themselves continue to operate independently and be owned by depositors.
The new joint holding company, River Run Bancorp, MHC, began operating Saturday with combined assets of nearly $3 billion. Officials said the merger is designed to create back-office efficiencies while “both Banks will maintain their local name, brand, retail, lending organizations, management and board of directors.”
“The formation of River Run is a testament to the strength and solidarity of both independent banks, which makes our partnership under River Run so powerful,” said River Run CEO Lloyd Hamm, who also serves as president Newburyport Bank. “We believe this strategic partnership will yield countless benefits for the employees, customers, and communities of both banks.”
Jonathan H. Dowst, Pentucket Bank president and CEO, who also becomes president of River Run, added, “There is a tremendous amount of work being done in the background as we prepare for the official launch of River Run, and this is what provides the foundation for the long-term sustainability of both banks for the benefit of all of our customers, employees and communities. This is the most important part. This is why we are here.”
Dowst will become CEO of River Run upon Hamm’s retirement.
Newburyport and Pentucket corporators will jointly serve as corporators of River Run. Additionally, officials said, each bank will have a separate board of advisors. To further the independence of the two, “Both Banks have instituted charter protections to ensure both organizations remain independent mutual Banks for many decades to come.”
They said employees of River Run will be combining physical offices “to better accommodate the River Run team today while planning ahead for the future growth of River Run, as other banks may potentially seek to join the partnership.” Additional investments are also planned at several current bank locations over the coming year.