Fidelity Bank to merge with Barre Savings
IMAGE: FREEDIGITALPHOTOS.NET
Fidelity Bank is set to become the second-largest mutual community bank in Worcester County by agreeing to take over Barre Savings Bank as the two institutions announced a merger accord Wednesday.
Barre Savings, with nearly $125 million in local deposits, serves customers through three locations in Barre, Paxton and Princeton.
In a joint statement, Barre Savings President and CEO Guy H. Boyer and Fidelity’s chairman and CEO, Edward F. Manzi Jr. called the merger a “rare opportunity that leverages the strengths of both banks, increases service offerings and branch access, creates new opportunities for career advancement, and expands our support for local communities.”
Fidelity, based in Leominster, has nearly $500 million in local deposits, making it the ninth-largest bank in Central Massachusetts. It has seven branches, located in Leominster, Fitchburg, Gardner, Shirley, Millbury and Worcester. It employed 124 as of June 2014. Barre Savings, founded in 1869, had 38 employees as of June 2014.
“These are challenging times for smaller community banks,” Boyer said. “The ever-growing complexities of the banking business can be difficult for a bank the size of Barre Savings Bank. The new combined institution will allow us to make the investments necessary to stay competitive and deliver services, while never forgetting our community bank values.”
Boyer called the merger an “incredible opportunity” for Barre Savings Bank and its stakeholders. “Joining an organization that shares our values and our employee- and customer-centric approach, further solidifies our long-term commitment to our communities,” said Boyer, who will retire after he spends at least three months with the bank after the merger to help with the transition, the statement said.
“I have tremendous respect for Guy Boyer, the Barre Savings Bank board of trustees, employees, and management team,” Manzi said. “Barre Savings Bank has been a great example of what it means to be a community bank. I want to express how grateful and excited we are to have the opportunity to partner with this great organization to ensure these values are carried forward for years to come.”
$1.5M foundation part of deal
As part of the agreement, Fidelity will establish a $1.5 million community foundation to provide support to nonprofit organizations in the Barre, Paxton and Princeton area. That, Boyer said, “will allow us to dramatically increase our level of support for local organizations.
Manzi and Boyer emphasized that this is a merger of state-chartered, mutually owned financial institution, combining assets that will create a community bank with 10 offices and assets of approximately $750 million.
The merger agreement has been approved by the boards of both banks, yet subject to a vote of Barre Savings' corporators. In addition, the merger is subject to approval by the Federal Deposit Insurance Corporation (FDIC) and the Massachusetts Division of Banks, and is expected to be completed in the second quarter of 2016, the banks' joint statement said.
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