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Cornerstone Bank has completed its merger with Athol Savings Bank. Athol will retain its name and brand identity while being referred to as a division of Cornerstone Bank.
Spencer and Southbridge-based Cornerstone is itself part of the same mutual holding company as Holyoke-based PeoplesBank.
Daniel Zona, former president and CEO of Athol Savings Bank, will now be president of Cornerstone Bank under CEO Todd Tallman. He succeeds Randal Webber, who announced his retirement from Cornerstone Bank in March 2025.
The Cornerstone Bank board of directors has also expanded to include four new members, including Zona.
“This is a meaningful moment for both banks,” Zona said in a statement. “Our teams share a strong commitment to customers, employees and the communities we call home. With the merger now finalized, we can begin fully delivering the enhanced services and opportunities that come with joining forces.”
As a result of the merger, the combined institution will have access to 17 branch locations. The combined institution now boasts $2.3 billion in assets and $1.8 billion in deposits. The larger mutual holding company now has around $6.69 billion in assets.
A systems conversion is expected to take place in the first half of 2026, according to Athol Savings Bank. There were no staffing reductions as a result of the merger.
