Photos by James Sanna | Banker & Tradesman Staff (left) and courtesy of Mechanics Cooperative Bank (right)
North Adams-based MountainOne Bank and Taunton-based Mechanics Cooperative Bank have received all regulatory approvals required to complete the merger of their mutual holding companies.
“This merger is a strong step for both organizations,” Robert J. Fraser, president and CEO of MountainOne Bank said in a statement. “It reflects shared priorities and a clear focus on bringing long-term value to our customers and community. We are proud of the work that brought us here and confident in the direction ahead. Our customers, employees, and communities remain at the center of our decisions.”
MountainOne Bank and Mechanics Cooperative Bank will continue to operate as two separate, independently chartered community banks, and will each retain their existing names, headquarters locations, leadership teams and boards of directors, the two said in a joint announcement. The newly combined mutual holding company will operate under the name MountainOne Financial, MHC, and will have approximately $1.9 billion in assets.
Mutual holding company mergers have become an increasingly popular tool among smaller banks to lower operating expenses by sharing services while retaining an independent brand.
Upon completion of the merger, Fraser will be chairman of the combined mutual holding company and Mechanics Cooperative President and CEO Joseph T. Baptista Jr. of will be its president and CEO. Fraser will continue in his role as head of MountainOne Bank and Baptista will also remain in his post as head of Mechanics Cooperative Bank. The banks say there will be no staff reductions associated with the merger.
“We are excited to move forward together,” Baptista Jr. said in a statement. “This merger positions us to grow, invest, and serve with even greater impact. Our teams are energized by our shared vision, and we are looking forward to the opportunities it creates for our customers and communities. MountainOne Financial, MHC will carry on each legacy organizations’ commitment to mutuality, which places its customers and communities at the center of organizational decision-making. MountainOne Bank and Mechanics Cooperative Bank each have deep roots in their respective communities and have prioritized an ongoing commitment to remain local, accessible, and engaged.”
The merger transaction is scheduled to take place on Jan. 1.
