PeoplesBank and Cornerstone Bank announce merger to form $6bn entity
PeoplesBank and Cornerstone Bank have officially declared their intent to merge their holding companies in a definitive agreement that will see the formation of a new, consolidated entity known as PeoplesBancorp, MHC. This merger is set to combine the strengths of both institutions to create one of the largest mutual multi-bank holding companies in the Northeast, with combined assets approximating $6 billion.
The new structure will maintain the individual identities and operational frameworks of both banks. PeoplesBank, which primarily serves western Massachusetts and northern Connecticut, and Cornerstone Bank, which caters to central Massachusetts, will continue their operations under their existing names and brands. This strategic decision ensures no disruption to customer services, with all account information, branch banking, and digital access remaining unchanged.
Thomas Senecal, the CEO & Chairman of the newly formed PeoplesBancorp, MHC, emphasized the merger’s benefit, stating, “This merger of our holding companies will create more financial support for each of our banks, ensuring the kind of sustained strength that our customers have relied on since our founding in 1885.” Todd Tallman, soon to be President of the combined entity, echoed this sentiment, highlighting the merger’s potential to enhance scalability and strength for future growth.
The decision was unanimously approved by the Boards of Directors of both holding companies and is now awaiting approval from the corporators of PeoplesBancorp, MHC and SSB Community Bancorp, MHC, as well as regulatory clearance. The anticipated closure of the merger is in the first quarter of 2025.
Piper Sandler & Co. provided financial advisory services for the transaction, while Luse Gorman, PC and Nutter McClennen & Fish LLP served as legal counsel to PeoplesBancorp, MHC, and SSB Community Bancorp, MHC, respectively.
This merger is a pivotal step for both PeoplesBank and Cornerstone Bank as it leverages their combined financial strengths and established market presences. It strategically positions the new holding company to better serve their communities and expand their market reach effectively.