Bank merger
Barre Savings Bank and Fidelity Bank have decided to combine forces under the Fidelity banner. The merger, once it's completed next year, will create the second-largest mutual community bank in Worcester County, behind Hudson-based Avidia Bank.
What are the basic facts about the two banks?
Barre brings three branches – in Barre, Paxton and Princeton — to the deal, along with (as of June 2014) 38 employees and nearly $125 million in local deposits.
Fidelity, based in Leominster, has seven branches: in Leominster (two locations), Fitchburg, Gardner, Shirley, Millbury and Worcester. As of June 2014, it had 124 employees and nearly $500 million in local deposits, making it the ninth-largest bank in Central Massachusetts.
Both are mutual banks founded in the 19th century: Fidelity in 1888 and Barre Savings in 1869.
Why merge?
Smaller, homegrown banks need to balance the need for a healthy bottom line with their wish to not become so big that they lose their community focus and identity. From Barre Savings' point of view, joining with the larger Fidelity keeps it viable and local, while offering more branches and services to customers. Meanwhile, for Fidelity, the agreement will raise its asset base to about $750 million, according to a joint statement from the banks, and expand its customer base.
When will the merger take place?
It's expected to be completed in the second quarter of 2016. As of press deadline, it's still subject to a vote of Barre Savings' corporators. The merger must also be approved by the Federal Deposit Insurance Corporation and the Massachusetts Division of Banks.
What about the leadership?
Barre Savings' president and CEO, Guy H. Boyer, will retire after helping with the transition. Fidelity's chairman and CEO, Edward F. Manzi Jr., will lead the combined operation.
Is this a friendly takeover?
Yes. In their statement, both banks stressed common values of commitment to customers, employees and community. Boyer said the deal was an “incredible opportunity” for Barre Savings. Manzi added: “Barre Savings Bank has been a great example of what it means to be a community bank.”
Any icing under the ink?
As part of the agreement, Fidelity will establish a $1.5 million community foundation to provide support to nonprofit organizations in and around Barre, Paxton and Princeton.
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