Two mutual banks in the North Shore are planning to merge.
Peabody-based North Shore Bank and Beverly Bank said in a joint statement yesterday that Beverly Bank and its mutual holding company Beverly Financial will merge with and into North Shore Bank and its mutual holding company North Shore Bancorp.
After the merger is complete, the combined entity will have more than $1.35 billion in assets and 18 full-service branches locations throughout Essex County and southern New Hampshire. All Beverly Bank employees will join the North Shore Bank team.
North Shore Bank President and CEO Kevin M. Tierney Sr. will lead the new institution as CEO, while Beverly Bank President and CEO Michael R. Wheeler will assume the role of president and COO.
“In today’s banking environment, one characterized by increasing technology costs, ongoing regulatory demands and evolving cyber-security, community banking can be challenging and competitive,” Tierney and Wheeler said in a statement. “By merging our institutions, we are not only committing to mutuality but also achieving a size and scale that will allow us to create an even stronger, more relevant bank for the future. The merger essentially combines two financially sound banks – both chartered in 1888 – who share a deep commitment to their customers and the communities they serve.”
The merger between North Shore Bank and Beverly Bank is the second in Massachusetts in recent months to create an institution over $1 billion in assets; North Easton Savings Bank and Whitman-based Mutual Bank announced they would merge last November. Roughly 40 banks in the commonwealth now have more than $1 billion in assets and some community bankers believe $1 billion is the new threshold for long term sustainability.
There was no mention of potential branch consolidation, but both banks have branches in Salem and Danvers, and the combined entity would have four branches in Beverly.
The merger is subject to approval by North Shore Bancorp and Beverly Financial corporators, and still needs certain regulatory approvals. The merger is expected to be completed during the third quarter of 2019.
Nutter, McClennen & Fish LLP served as legal counsel for North Shore Bank and Luse Gorman PC served as legal counsel to Beverly Bank.
