Stronger Together
Greenfield, Northampton Cooperative Banks Agree to Merge
Citing mutually beneficial strengths that will benefit customers, two of the region’s cooperative banks have agreed to merge in a deal expected to be finalized early next year.
Greenfield Co-operative Bank and Northampton Cooperative Bank announced last month that they plan to form a single entity under a consolidation plan that has been approved by the boards of directors of both banks. Both are state-chartered cooperative banks that, when merged, will operate under the name Greenfield Co-operative Bank. The combined banks will boast about $495 million in deposits, more than $60 million in capital, and 95 employees.
“I can’t think of a more logical and mutually beneficial combination of strengths than this partnership. Both banks are well-capitalized, operate under similar charters, and are located in adjacent counties,” said Northampton Co-op Bank President and CEO William Stapleton.
The merger will give customers of both banks access to 10 full-service locations and 11 ATMs located in Hampshire and Franklin counties. Both Stapleton and Michael Tucker, president and CEO of Greenfield Co-operative Bank, cited this expanded access as one of the reasons for the deal, adding that the banks will also benefit from improved economies of scale and more efficient operations. They emphasized that no layoffs or office closings will result from the merger.
“Both of our institutions are very similar in operations and culture,” added Stapleton. “We are small, friendly, customer-oriented institutions, and proud of our long traditions in outstanding community service. Customers of both banks will continue to be served by the same dedicated people they have always known.”
Subject to normal regulatory and closing conditions, the consolidation is expected to become official during the first quarter of 2015.
The Northampton Cooperative name will continue to be used on all current and future offices in Hampshire County, as a division of Greenfield Co-op. All current and future Franklin County offices will continue to operate under the Greenfield Co-operative Bank name, and it will remain a subsidiary of Greenfield Bancorp, MHC, the mutual holding company.
Stapleton will serve as CEO of the holding company and chairman of the combined bank, with Tucker remaining as president of the holding company and president and CEO of the combined bank. The bank and holding company boards will include the members of both bank boards to assure continuity of both institutions.
“As mutual institutions,” Stapleton said, “we can continue to take the long-term view, and we will work together to ensure that this new, local community bank is here for the next century of service to our marketplace.”
In addition to expanded branch and ATM access for customers, Northampton Cooperative customers will have access to new financial services and low-cost Mass Save energy loans through Greenfield Co-op. In addition, Tucker said, a single cooperative bank expands opportunities for commercial lending, such as SBA loans.
“Customers of both banks will continue to have excellent deposit products,” he added, “including free mobile and online banking with free bill pay and free debit-card services.”
Both banks have served their communities for more than 100 years. Northampton Cooperative Bank has four full-service offices, two in Amherst and two in Northampton.
Meanwhile, Greenfield Co-operative Bank boasts six full-service offices: two in Greenfield and one each in Northfield, Sunderland, Shelburne Falls, and Turners Falls, in addition to its Commercial and Financial Services office in Greenfield.
