MountainOne Bank, Mechanics Cooperative Bank to Merge Holding Companies

NORTH ADAMS — MountainOne Financial MHC, the mutual holding company parent of MountainOne Bank, and Mechanics Bancorp MHC, the mutual holding company parent of Mechanics Cooperative Bank, jointly announced they have entered into a formal agreement to merge into a combined mutual holding company.

After the completion of the merger, the new consolidated holding company for both banks will be MountainOne Financial MHC, and both banks will continue to operate independently, retaining their respective charters, headquarters, and brand names. The agreement, approved by both institution’s boards of trustees, awaits regulatory and corporator approval. The transaction is expected to close in the second half of 2025.

After completion of the merger, the new consolidated holding company for both banks will have approximately $1.8 billion in assets and 15 full-service retail banking locations across Massachusetts. Robert Fraser will become chairman, and Joseph Baptista Jr. will become president and CEO of the combined mutual holding company. Fraser will continue in his role as president and CEO of MountainOne Bank, and Baptista will also remain as president and CEO of Mechanics Cooperative Bank.

Under the terms of the agreement, no reductions in staff are planned at either institution. Furthermore, the agreement specifies a shared commitment to mutuality, a cornerstone of the combined organization.

“I am thrilled at the opportunity this partnership creates for our combined organizations. Continuing to operate independently enables us to position both mutual banks, as well as MountainOne Insurance and MountainOne Investments, for continued and future growth,” Fraser said. “Simply put, as two individually successful, fiscally strong, and strategically aligned mutual banking institutions, our combination is far greater than the sum of our parts.

“Mechanics is a like-minded financial institution who, like MountainOne, has built an incredibly strong reputation within its communities,” Fraser went on. “Together, we will create an even stronger, more resilient financial institution through a combined talent pool, shared resources, and technologies that benefit our customers and employees for the long term.”

Baptista added that “today is an exciting day in Mechanics Cooperative Bank’s 147-year history as we announce a partnership with MountainOne. Our shared values, vision, and deep roots in our respective markets make this partnership a natural fit. As mutual banking institutions, we are owned by our depositors, not by shareholders. As we set our sights on the future, we are committed to maintaining our mutuality structure, and our combined organization will continue to prioritize the interest of our customers and communities above all else.

“Our ongoing commitment to our local communities remains a great source of pride to our employees and is part of our shared legacy,” Baptista continued. “Customers at both institutions will continue to receive the same exceptional products and services they have come to know and expect. And, over time, this collaboration will allow us to create a more competitive, innovative organization that is well-positioned for long-term growth and stability for our valued customers and employees. Together, we are building a stronger, more dynamic, relationship-driven financial organization that will continue to service our communities at the local level for generations to come.”