🔒Cornerstone Bank completes $2.4B merger with Athol Savings

Cornerstone Bank and Athol Savings Bank signed off in 2025 by finalizing their anticipated merger, with the latter officially becoming a division of the Worcester-based institution, effective Dec. 31.

“As of today, our partnership is officially complete, and we are excited to move forward as one organization,” Cornerstone CEO Todd Tallman said in a Monday press release. “This merger strengthens our ability to serve customers with improved technology, expanded products, and deeper community investment, while staying true to the values that define both banks.” Athol Savings will operate under its current name and will keep all five of its branches open in Athol, Ashburnham, Barre, Winchendon, and Gardner, according to Cornerstone Banks’ July announcement of the merger. With the completed union, Daniel Zona has assumed his role as president of Cornerstone Bank, transitioning from his former positions as president and CEO of Athol Savings. He replaces Randal Webber, who previously announced he would retire from Cornerstone after a 16-year career with the bank. In his new leadership capacities, Zona will help lead what is now an institution worth more than $2 billion, with Cornerstone Bank reporting $1.7 billion in assets and Athol Savings reporting $675.7 million as of June 30, 2024. “This is a meaningful moment for both banks,” Zona said in the press release. “Our teams share a strong commitment to customers, employees and the communities we call home. With the merger now finalized, we can begin fully delivering the enhanced services and opportunities that come with joining forces.” As previously confirmed, the merger has not resulted in any layoffs at Athol Savings. Cornerstone Bank used Washington, D.C.-based Luse Gorman as legal counsel in the merger and Piper Sandler, with a Boston office, as its financial advisor. Athol Savings used Connecticut-based Updike, Kelly & Spellacy, P.C. as legal counsel. Mica Kanner-Mascolo is a staff writer at Worcester Business Journal, who primarily covers the healthcare and professional services industries.