Norwood Bank and Foxboro Federal Savings have agreed to a merger that will create a $900 million-asset bank with a new name.
The banks said in a joint announcement today that the boards of directors at both banks had approved the deal.
Norwood Bank is a state-chartered cooperative mutual bank with about $715 million in assets and one branch. Foxboro Federal Savings has about $204 million in assets and three branches in Foxboro, Norfolk and Plainville. All four branches will be retained following the merger.
“This is a merger of two well-capitalized community banks with very similar histories, visions, and cultures,” John Galvani, president and CEO of Norwood Bank, said in a statement. “The goal is to create one larger, stronger community bank with an expanded branch footprint and more resources to better serve our customers.”
Galvani will remain as the bank’s president and CEO following the merger. Dennis Parente, president of Foxboro Federal Savings, will retire and become a board member of the combined bank.
“Given the dynamics of today’s banking environment, Foxboro Federal must evolve into a larger institution,” Parente said in the statement. “The most beneficial way to do this for our customers and employees is to combine with another strong community bank.”
The new name and branding will be developed before the completion of the merger, the statement said. The banks said the new name is expected to be announced before the end of the year. Based on Foxboro Federal Savings organizational structure, its customers must approve the merger.
Employees at both banks will keep their jobs and have opportunities for growth, according to the statement.
“This merger will enable us to stay ahead of a rapidly changing banking industry, remain competitive, and allow us to better invest in our people, technology, products, and services,” Galvani said.
The merger will give Foxboro Federal Savings’ customers access to the Massachusetts Deposit Insurance Fund, which provides insurance on deposit amounts above the $250,000 guaranteed by the FDIC.
This is the fourth merger involving Massachusetts banks announced this year as Cambridge Trust Co. is acquiring North Andover-based Northmark Bank, East Cambridge Savings Bank is acquiring Woburn-based Patriot Community Bank, and multi-bank holding company Hometown Financial Group is acquiring Quincy-based Envision Bank and merging it with Abington Bank.