WHITMAN, MA/BROCKTON, MA, ISSUED July 22, 2006… Mutual Bank, headquartered in Whitman, MA and Security Federal Savings Bank of Brockton, MA, two independent community banks, announced today that they have signed a Letter of Intent to merge the two banks, pending regulatory approval. The combined bank will do business under the name Mutual Bank.
Mutual Bank has branches in Whitman, Hanson, Halifax and Carver. Security Federal Savings Bank has two branches in Brockton and one in Falmouth.
Glen S. White, CEO of Mutual Bank, and William J. Morse, CEO of Security Federal, made the announcement jointly. White will become Chairman and CEO of the combined bank and Morse will serve as President and COO.
White said the merger will strengthen the combined bank’s position in the market and help continue their mission to remain a community bank, providing strong personal service and dedicated to helping in the communities the bank serves.
Mutual Bank and Security Federal share a number of common characteristics. Both institutions trace their history to the late 1800s, Security Federal to 1877 and Mutual Bank to 1889. Both are similar in size with Mutual Bank having four branches and assets of $142 million and Security Federal with three branches and $117.1 million in assets.
Morse said that Mutual Bank had recently shortened its name (to Mutual Bank from Mutual Federal Savings Bank of Plymouth County) after market research indicated that the shorter name will enhance the bank’s profile and name recognition by consumers. He said, “The word ‘mutual’ effectively conveys what both banks are all about. Both banks are mutual institutions, owned by their depositors, not by stockholders, and are dedicated to serving their members and their communities.”
White said, “This is a wonderful opportunity for both banks. All around us, we watch larger banks absorbing smaller ones to the point where the community bank is becoming a vanishing breed. The joining forces of these two smaller community banks will make a stronger community bank that can effectively compete while remaining true to our mission to focus our resources locally and preserve our local bank character.
Morse said that he is excited about being able to offer Security Federal's customers access to on-line banking services and an expanded array of checking accounts and consumer loans, services currently provided to customers of Mutual Bank. He said, “Both banks have nearly 250 years of combined experience in home mortgage and home equity lending. Security Federal opened its branch in Falmouth for the express purpose of assisting customers in the Brockton area with purchases of second homes and retirement homes on the Cape. That experience and the combined bank's strength will be put to work to help more people enjoy the benefits of home ownership.”
White noted that when initially discussing the concept of a merger, both banks immediately recognized that their branch networks are complementary, running from the Brockton/Whitman area on a southeast path to Falmouth on Cape Cod. The combined branch network will offer customers of both institutions greater convenience and more branch and ATM locations. An important consideration for the managements of both banks is that while offices are in the same general market area – upper and mid Plymouth County and Falmouth, none are overlapping, so that all branches and their staffs can be retained.
White said that the banks hope to complete the merger by the end of the year. Additionally, White said, plans are in the works to open a new location in the near future.
The combined bank will employ approximately 80 people, and the two separate boards of directors will combine as one board with 14 members.
About Mutual Bank
Mutual Bank, formerly known as Mutual Federal Savings Bank, is an independent, mutually-owned bank serving the community’s personal and small business banking needs, with full-service offices in Whitman, Hanson, Halifax, and Carver. The Bank has operated continuously as an independent, local institution since 1889. The main office is located at 570 Washington Street in Whitman, Massachusetts. For more information, visit www.MyMutualBank.com or call Christine Grundy, Vice President/Marketing Director at 781-447-4488.
About Security Federal Savings Bank
Security Federal Savings Bank has operated continuously as an independent, mutually-owned, community bank since opening in Brockton in 1877. The main office is located at 40 Legion Parkway, Brockton. The bank has branches on the east and west sides of Brockton and opened its Falmouth office in 1972. For more information, please visit www.SecurityFederalSavings.com or call William Morse, President and CEO at (508) 586-4494.
