The Salem Five board of trustees approved changes to the bank’s by-laws, deepening the bank’s commitment to its mutual bank status.
The move preserves the bank’s independence and prevents any Salem Five employee or board member from benefiting financially should a future change in structure occur.
By-law changes included three primary actions:
- A clear statement that Salem Five will not consider any conversion proposal unless there is a compelling reason to do so.
- Prohibits any director, officer, trustee or employee of Salem Five or its affiliates from profiting from a conversion proposal.
- If the new by-law amendments are repealed or amended in the future, the prohibition shall continue to apply to all persons who were officers, directors, trustees or employees at the time of such repeal or amendment.
"As a mutual bank, Salem Five has an unwavering commitment to our customers, employees and community," said Joseph M. Gibbons, president and chief executive officer. "This enhancement of our charter is our way of ensuring that Salem Five remains committed to its mission and will retain its mutuality for generations to come."
Salem Five is not publicly held and has no stockholders. This allows the bank to make decisions utilizing a long-term perspective and to build mutually beneficial relationships and maintain flexibility with customers, according to a statement.
"Salem Five is an organization with a history of 156 years of serving our communities, and these communities have entrusted us with this legacy," Gibbons added. "We have an obligation to do our best to ensure that Salem Five continues this vital mission for another 150 years and longer. As markets and financial services become more complex, community banks such as ours become increasingly important to the communities we serve."
