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The mutual holding companies of Dedham Savings and South Shore Bank plan to combine without merging the two banks.
The banks said in a joint announcement Tuesday that South Shore Bancorp would merge into Dedham Savings’ parent company, 1831 Bancorp MHC. Both banks would then continue to operate independently under the one parent company.
The boards of trustees of both banks have approved the deal, which still requires regulatory approvals. Bank corporators must also agree to the combination.
“One of the most appealing things that I see from this opportunity is that we are two strong institutions that are coming together without the pressure to unnecessarily cause immediate disruption to our core businesses or markets the way many mergers do,” Peter Brown, CEO and president of Dedham Savings, said in a statement. “We are both disciplined organizations that value our heritage as mutual banks and we will continue to operate that way.”
The banks said they expect regulatory approval later this year. Brown will continue to lead Dedham Savings and become chairman and CEO of the mutual holding company following the combination.
Jim Dunphy, CEO of South Shore Bank, will continue in that role and become president of the combined holding company. Brown plans to retire in three years, the statement said, and Dunphy will then take on the role of CEO of the combined company.
“The ability to have two organizations with similar assets and culture come together positions us well in a highly competitive market and gives us a tremendous opportunity to deploy capital in more ways than we could independently,” Dunphy said in a statement. “This will enable us to be smart about our investments and to retain our great employees while best serving clients with whom we have built strong relationships over the years.”
The combined holding company will have about $4 billion in assets. The banks have adjacent markets but no overlapping branch locations.
“Dedham Savings and South Shore Bank have been serving their markets for 192 and 190 years respectively, so we understand what this commitment means,” Brown said. “This partnership positions our banks well for the future to continue to deliver what our customers need, through the channels they prefer to use – and doing that in the local way they expect from us.”
The deal follows a similar move announced in December by Newburyport Bank and Pentucket Bank to combine under Newburyport Bank’s mutual holding company while operating separate banks.
