SpencerBANK and Southbridge Savings Bank have announced a merger to combine their two mutual holding companies. The two banks will, however, continue to remain separate, independent entities.

The merger has been approved by the boards of directors of the mutual holding companies of SpencerBANK and Southbridge Savings Bank and is still subject to regulatory approvals. It is expected to close in the second quarter of 2016.

“This is a merger of equals; both of our institutions are strong, highly-respected institutions with comparable assets,” K. Michael Robbins, president and CEO of SpencerBANK, said in a statement. “We are very similar in culture and take pride in our long traditions of outstanding customer service and community involvement.”

“We will continue to create superior, lasting banking relationships with the primary purpose of making customers more successful. This merger will also expand bank deposit and lending capabilities, allowing us to be more competitive in our market,” Todd M. Tallman, president and CEO of Southbridge Savings Bank, said in a statement.

Robbins will work as the chairman and CEO of the merged companies while Tallman will work as president and treasurer. Both Robbins and Tallman will continue as president and CEO of their respective banks.