Photo | Courtesy of of Cornerstone Bank
Todd Tallman, CEO of Cornerstone Bank
9 hours ago
Cornerstone Bank to merge with Athol Savings, names new president
Photo | Courtesy of Cornerstone Bank
Cornerstone Bank on Park Avenue in Worcester.
Two of the 20 largest banks in Central Massachusetts will soon become one, as Worcester-based Cornerstone Bank and Athol Savings Bank plan to merge, creating a more than $2-billion financial institution.
“This is an incredibly exciting time for us,” Todd Tallman, CEO of Cornerstone Bank, said in a Monday press release. “We are growing. Athol Savings Bank has a great team, and its mission, values and commitment to mutuality align seamlessly with ours.
The merger is expected to close in the first quarter with Athol Savings operating as a division of Cornerstone Bank. Athol Savings will keep its name and continue operating its five branch locations in Athol, Ashburnham, Barre, Winchendon, and Gardner.
With $1.3 billion in local deposits as of June 30, 2024, Cornerstone Bank is Central Massachusetts’ 10th largest bank while Athol Savings is the region’s 19th largest with $511.1 million in local deposits, according to data collected by WJB’s Research Department. With $1.7 billion and $675.7 million in assets, respectively, the merger will result in an entity with a combined $2.38 billion in assets.
Cornerstone Bank sees the merger as a strategic move, allowing the institution to offer its digital banking services to a broader customer base while leveraging Athol Savings’ strong community trust, according to the release. Additionally, the banks say their unity will bolster their charitable giving, community involvement, and volunteer efforts throughout the state’s North Quabbin region.
“This move will strengthen our ability to serve our communities while preserving our focus on customer service. Our combined scale will make us more efficient, expand product offerings and improve customer service through shared resources and technology. In today’s industry, scale matters,” Tallman said in the release.
With the merger, Athol Savings President and CEO Daniel Zona will transition to the role of president of Cornerstone Bank. Zona will replace Cornerstone President Randal Webber, who announced in March he would retire in early 2026 following a 16-year tenure with the institution.
“I’m honored to lead Cornerstone Bank into this next chapter,” Zona said in the press release. “Both banks share a commitment to our community, employees, and customers. Together, we can achieve strategic growth while maintaining a community-first approach rooted in mutual values.”
Zona, along with three additional individuals, will be added to Cornerstone Bank’s board of directors.
The merger will not result in layoffs, and Athol Savings staff will be offered the same or similar positions to their current roles.
Cornerstone Bank has hired Washington, D.C.-based Luse Gorman to serve as legal counsel and Piper Sandler, with an office in Boston, as its financial advisor while Athol Savings is utilizing Updike, Kelly & Spellacy, P.C. out of Connecticut as legal counsel.
Mica Kanner-Mascolo is a staff writer at Worcester Business Journal, who primarily covers the healthcare and diversity, equity, and inclusion industries.
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