Bluestone Bank's headquarters building in Raynham. Photo courtesy of Bluestone Bank
Raynham-based Bluestone Bank is merging its mutual holding company with that of Cape Cod 5 to create an $8.8 billion-asset organization.
The two banks announced the deal Friday morning.
Bluestone would become the third member bank of Mutual Bancorp after Leominster-based Fidelity Bank, which also has around $1.5 billion in assets and joined Cape Cod 5’s mutual holding company in 2023. The deal is the second mutual holding company merger in Massachusetts this year.
As part of the deal, Bluestone President and CEO Meg McIsaac will also assume the position of co-president and vice chair of the board of trustees at Mutual Bancorp. Two additional members of the Bluestone Bank board of directors will also join the board of Mutual Bancorp.
“Our teams have worked together to build a thoughtful structure that allows our banks to benefit from shared strength and resources while maintaining their deep local roots,” Matt Burke, chairman and CEO of Mutual Bancorp and CEO of Hyannis-based Cape Cod 5, said in a statement. “Welcoming Bluestone into our family of banks reinforces that vision and positions all of our banks for continued growth, innovation and long-term success. Together, we are stronger and better equipped to serve our clients and communities, and to continue to invest in the growth of our colleagues.”
FDIC data shows the combined entity will have $8.8 billion in assets, $7.13 billion in assets and 46 branches on Cape Cod, in North Central and Central Massachusetts and Boston’s southern suburbs. Mutual Bancorp will become the biggest mutual holding company in Massachusetts if the deal is finalized.
Mutual holding company combinations have become a popular tool in Massachusetts over the last five years as the state’s many small mutual banks seek scale to compete with regionals, megabanks making expansion pushes in the state and large local competitors. By pooling resources, executives have said, they are able to offer better customer-facing technology, more services and are able to compete for bigger loans than they would be able to alone.
“Entering into this strategic partnership with Cape Cod 5 and Fidelity Bank as part of Mutual Bancorp enables Bluestone to further invest in providing financial products and services to our customers, enhance the support we provide to our communities, and continue to offer career development to our employees,” McIsaac said in a statement. “We are excited about the strengths our three banks bring to each other and to the customers and communities we all serve.”
