January 8, 2013– Meredith Village Savings Bank and Merrimack County Savings Bank announced today the finalization of their formal alliance as partners in the newly formed holding company, New Hampshire Mutual Bancorp.
Samuel L. Laverack, President and CEO of Meredith Village Savings Bank, and Paul C. Rizzi, Jr., President and CEO of Merrimack County Savings Bank, will serve as co-CEOs of New Hampshire Mutual Bancorp, the first multi-bank mutual holding company in the state. As part of the alliance, each affiliate bank has retained its name and state charter, and each bank’s board of directors and senior management will continue to oversee the operations of their respective banks.
Both organizations share a common goal to build a vigorous alliance between the two well-capitalized, healthy, independent community banks. This alliance will enhance each bank’s ability better to serve its customers and communities and to maintain each bank’s status as a sound, stable, independent institution as the banking industry faces new challenges and continues to consolidate in an era of rapidly expanding technology and regulatory pressures.
Laverack and Rizzi noted that they personally share a strong, mutual respect and trust and that the banks themselves enjoy similar corporate structures, histories and cultures. They pointed to the advantages of their geographic proximity, complementary yet distinct market areas, and their fundamental commitments to delivering high quality customer service.
The management and board of directors of each institution are committed to maintaining each bank’s status as an independent community bank and its mutual form of ownership. Laverack and Rizzi both share a firm belief that a mutual form of ownership clearly serves bank customers and communities best. A mutual holding company has no stockholders, which allows it to invest its profits more conservatively for long-term sustainability and sound growth. In addition, decision making can be based on the longer term benefits to the community, customers and employees as opposed to the immediate needs of stockholders and the market.
Rizzi noted that, “Our stability over the last few turbulent years has reinforced our belief in the mutual approach to ownership. This alliance makes it even more certain that we will prevail for generations to come.” Laverack added, “We’re here to stay as local, mutual banks that will thrive, not just survive, for the future benefit of our customers, staff, and communities.”
Through the newly formed holding company, the two affiliate banks will be in a position to optimize the strengths and competitive advantages of each organization and to grow market share in their distinctive markets. With combined resources the overall company will better position each affiliate bank to serve its customers with significantly greater loan capacity and leading edge products and services and to implement enhanced technology-based delivery systems. It is anticipated that the two banks will be able to expand while managing expenses as they jointly develop new products and services. It is further anticipated that each affiliate bank will share some resources, thus affording each bank greater capacity for future growth. However, this will occur over time, years in most cases, as the needs and opportunities are identified.
About Meredith Village Savings Bank
Meredith Village Savings Bank, founded in 1869, is an independent mutual banking organization with 11 offices serving individuals, families, businesses and municipalities in the Lakes Region and the Plymouth area. The bank and its employees are inspired by MVSB’s core values: respect, integrity, teamwork, excellence, and stewardship. These values are intrinsic to every decision made at the bank and are illustrated by the high priority they place on trust, quality service, and commitment to community support. MVSB strives to make the communities it serves a better place to work and live. More information can be found at www.mvsb.com.