-
Rising regulatory costs are forcing banks of all shapes and sizes to take a hard look at consolidation, including the mostly dormant field of mutually owned banks.
July 11
Two small Massachusetts mutual thrifts are planning to join forces in hopes of gaining the scale to better compete against larger banks.
Framingham Co-operative Bank and Natick Federal Savings Bank announced Wednesday that they intend to merge in a deal that would create an institution with more than $550 million of assets and three branches in communities west of Boston. Because both are mutuals and do not have shareholders,the assets of two institutions will simply be blended with no money changing hands.
Until recently
"Increasing regulatory and operational expenses make it very difficult for the small community bank to thrive," said Brian K. Peoples, Natick's president and chief executive, in a news release Wednesday. "The consolidation will maintain our strength as a well-capitalized mutual institution with the size necessary to compete in today's banking environment."
The deal would combine two thrifts in neighboring towns that have been serving their communities since the 1880s. Framingham, the larger of the two thrifts with nearly $400 million of assets, would be the surviving institution and its CEO, Mark R. Haranas, would become CEO of the combined company. Peoples and three other Natick directors would join Framingham's board. The deal is expected to close in the third quarter.