AUBURN — Mechanics Savings Bank, based in Auburn, has formed an affiliation with Biddeford Savings Bank, creating a mutual holding company that will have $750 million in combined assets and will allow both institutions to offer more loans, products and services, according to management.
No employees are expected to lose their jobs as a result of the agreement, which forms an entity called Maine Community Bancorp. Together, the two banks employ 152 people and operate 10 branches.
“We are confident that entering into this alliance positions both banks for a bright future together,” Richard Vail, Mechanics Savings Bank president and CEO, said in a prepared statement.
Both banks will continue to operate separately. Under the plan, which still needs approval from state and federal regulators, the mutual holding company will equally share each bank’s board and management team.
According to information released by the banks, Vail and Biddeford Savings Bank President and CEO Charles Petersen will serve as co-CEOs. Each bank will retain its name and state charter, and current boards of directors and senior management will remain in place.
Mechanics Savings Bank had assets of $370 million as of Sept. 30, 2014. Biddeford Savings Bank had assets of $382 million. As Maine Community Bancorp, they will be Maine’s 20th-largest banking institution, and it marks the first multi-bank mutual holding company in Maine history, according to the banks’ news release.
Mechanics Savings Bank, founded in 1875, has offices in Auburn, Brunswick, Lewiston and Windham. Biddeford Savings Bank, founded in 1867, has six offices, three in Biddeford and one each in Kennebunk, Scarborough and Waterboro.
Implementation is expected in early 2016.
Send questions/comments to the editors.
