Alliance between Biddeford Savings and Mechanics Savings Bank Receives Initial Approval
Sep 17, 2015
Corporators and Depositors of Biddeford Savings and Mechanics Savings Bank have voted overwhelmingly to approve the formation of a Mutual Holding Company in special meetings held on September 15th and 16 th in Auburn and Biddeford, respectively.
“We very much appreciate the strong support that we received from both bank’s Corporators and Depositors”, stated Richard J. Vail, President and CEO of Mechanics Savings Bank. “The staff at each bank has been working closely together to prepare for the closing and the process is going well”, added Charles M. Petersen, President and CEO of Biddeford Savings. Vail agreed, noting that “Our Boards of Directors and staff have invested a great deal of time and energy into this proposed partnership and look forward to making it a reality in early 2016.”
The banks have also received conditional approvals to proceed from the FDIC and the Maine Bureau of Financial Institutions. The last approval required is from the Federal Reserve Bank and that application is pending.
Once final regulatory approval is received, both mutual banks will formalize their alliance by becoming wholly owned subsidiaries of Maine Community Bancorp. Petersen and Vail will serve as co-CEOs of the new holding company while continuing to serve as CEOs of their respective banks.
Under the alliance, which was unanimously approved by the boards of both banks earlier this year, each bank will retain its name, mutual form of ownership, state charter and status as a vibrant community bank. Through Maine Community Bancorp, the two banks will be in a position to build upon their respective strengths and competitive advantages. “With our shared resources this partnership will enhance our ability to better serve our customers and communities, stated Petersen. “The alliance will give both banks significantly greater loan capacity and the ability to develop leading edge products, services and technology for our customers.” While each Bank will remain independent, the alliance will result in certain cost efficiencies, which will enable the banks to compete more effectively with other financial institutions.
Biddeford Savings, an independent, community-focused mutual savings bank founded in 1867, has offices in Biddeford, Kennebunk, Scarborough, and Waterboro. Biddeford Savings is known for its excellent customer service and its citizenship, and is an Equal Housing Lender and Member FDIC. To learn more, visit www.biddefordsavings.com.
Mechanics Savings Bank is a full service community bank with a reputation for its customer-centric culture. Founded in 1875, Mechanics Savings Bank is a diversified consumer and commercial bank with an ongoing commitment to contribute to the betterment of the communities it serves. Branches are located in Auburn, Brunswick, Lewiston, and Windham. Mechanics Savings Bank has been awarded 2014 Best Places to Work in Maine, is an Equal Housing Lender and Member FDIC. Visit www.mechanicssavings.com.