Two of Massachusetts' oldest thrifts, Salem Five Bank and Stoneham Savings Bank, are teaming up to create a $3.1 billion-asset company that would have nearly 30 branches in the suburbs north of Boston.
In a news release Thursday, Salem Five and Stoneham said that they would operate as affiliated banks of the holding company Salem Five Bancorp. Because both are mutual thrifts no money would change hands, but Salem Five, the larger of the two thrifts with $2.8 billion of assets, has agreed to contribute a "significant sum" to Stoneham's charitable foundation.
Stoneham, which lost more than $14 million in 2009 and 2010, had been looking for a merger partner since earlier this year and Chief Executive Officer Don Fournier said it was looking for a bank that shared its commitment to remaining a mutual thrift. In April, Salem Five amended its by-laws to reaffirm its commitment to mutuality.
Salem Five and Stoneham were founded within days of one another in March of 1855. Under terms of their deal, Stoneham would retain its name for three years and all of its employees would retain their jobs.
The companies also intend to merge their insurance subsidiaries sometime after the deal closes in the fourth quarter.
