PeoplesBank and Cornerstone Bank Announce Merger of Holding Companies
June 20 2024 - 10:31AM
Business Wire
Two mutual banks will benefit from combined
strength while continuing separate operations
Following a unanimous vote from their boards, PeoplesBank and
Cornerstone Bank have announced that they have entered into a
definitive agreement to combine their holding companies in a merger
transaction. While the merger agreement between PeoplesBancorp, MHC
and SSB Community Bancorp MHC will unify holding companies, both
banks will continue operating under separate names and brands for
the foreseeable future.
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Todd Tallman, CEO of Cornerstone Bank,
and Thomas Senecal, CEO and chairman of the Board of PeoplesBank.
(Photo: Business Wire)
After the completion of the merger, the new consolidated holding
company for both banks will be PeoplesBancorp, MHC and have
approximately $6 billion in assets. Thomas Senecal will remain as
CEO and chairman and Todd Tallman will become president of the
combined mutual holding company, PeoplesBancorp, MHC. Brian Canina
will be the chief operating officer of the holding company and will
remain president of PeoplesBank.
Both institutions will benefit from the combined financial
strength of two strong community banks coming together to create
one of the largest mutual multi-bank holding companies in the
Northeast. PeoplesBank, serving western Massachusetts, and
Cornerstone Bank, serving central Massachusetts, will each continue
their normal operations with no disruption to customers. All
account information, branch banking and digital access will remain
the same for both banks throughout the transaction.
“This merger of our holding companies will create more financial
backing for each of our banks, ensuring the kind of sustained
strength that our customers have relied on since our founding in
1885,” says Tom Senecal, CEO and chairman of the Board of
PeoplesBank.
This partnership opens up both banks to future opportunities and
market growth. The merger was unanimously approved by the boards of
directors for both holding companies. Completion of the transition
remains subject to approval by the corporators of PeoplesBancorp,
MHC and SSB Community Bancorp, MHC, as well as regulatory approval.
Closing is anticipated in the first quarter of 2025.
“We’re excited to be joining forces with another mutual bank
serving its communities with the same kind of commitment we do,”
says Todd Tallman, CEO of Cornerstone Bank. “While customers won’t
see any difference in their day-to-day banking experiences, this
merger offers us more scalability and strength that we can build on
in the future.”
Piper Sandler & Co. served as the financial advisor on this
transaction. Luse Gorman, PC served as legal counsel to
PeoplesBancorp, MHC and Nutter McClennen & Fish LLP served as
legal counsel to SSB Community Bancorp, MHC.
About PeoplesBank
PeoplesBank is a $4.4 billion mutual bank founded in 1885 to
serve depositors, employees, and the community. The mutual
organizational structure empowers them to focus on the long-term
viability of the bank and the best interests of their customers.
The bank currently has 18 banking centers located in Massachusetts
and Connecticut.
About Cornerstone Bank
Cornerstone Bank is a $1.6 billion community bank built on trust
and the strong foundation of two long-standing mutual banks that
came together in 2017. The bank works to connect customers with
opportunities through a broad range of deposit and loan products
and services. Proudly helping people and businesses thrive in
Central Massachusetts for more than 150 years, the bank supports a
community-based banking model and currently operates 11 branch
locations. Whether a business or personal partnership, Cornerstone
stands on the foundation that relationships are built on trust. To
learn more, contact Todd Tallman at (800) 939-9103 or
Ttallman@cornerstonebank.com.
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Sue Spiry or Michelle Abdow (413) 787-1133
SSpiry@marketmentors.com Todd Tallman: (800) 939-9103