Newburyport Bank and Pentucket Bank Receive Final Regulatory Approval for Joint Mutual Holding Company
Newburyport, MA and Haverhill, MA – Newburyport Bank and Pentucket Bank are pleased to announce they have received formal regulatory approval for the establishment of River Run Bancorp, MHC as the singular, joint mutual holding company under which both banks will operate as separate, independent community banks. With the formation of River Run Bancorp, MHC (River Run), Newburyport Five Cent Bancorp, MHC, and Pentucket Bancorp, MHC, the former mutual holding companies of Newburyport Bank and Pentucket Bank, will merge to form River Run effective July 1, 2023.
River Run will manage the shared services organization supporting both Newburyport Bank and Pentucket Bank. While both Banks maintain their independent, mutual community bank status, working in tandem under River Run provides scale to the organization. Working together under River Run provides greater opportunities for advanced products and services and operational efficiencies. This will establish River Run as a dominant, sustainable, independent, and full-service mutual community banking partnership in the Northeastern Massachusetts and Southern New Hampshire markets. River Run Bancorp, MHC boasts consolidated assets of nearly $3 billion.
“We are thrilled to have received formal regulatory approval from the Federal Reserve Bank of Boston and the Massachusetts Board of Bank Incorporation for the formation of River Run and to begin officially operating under our new structure. The formation of River Run is a testament to the strength and solidarity of both independent banks, which makes our partnership under River Run so powerful,” said Lloyd Hamm, CEO of River Run. He continued, “We believe this strategic partnership will yield countless benefits for the employees, customers, and communities of both banks.”
In preparation for the legal formation of River Run, the teams of both Banks have been working behind the scenes to establish the River Run brand and to begin integrating back-office functions, combining internal technology platforms and aligning processes and procedures for the benefit of customers and employees of both Banks. Employees of River Run will be combining physical office spaces to better collaborate throughout the organization, with additional facilities investments planned at several current Bank locations over the coming year. These investments will create space to better accommodate the River Run team today while planning ahead for the future growth of River Run, as other banks may potentially seek to join the partnership.
A key milestone to date is the selection of a joint core systems provider that is an industry leader in technology and core banking solutions. Pentucket Bank’s conversion to this new system will align the daily operations of both Banks, creating a unique and seamlessly interchangeable banking experience for the customers of both Banks.
“The process to come together as one River Run team has proven our team’s talent and dedication to our customers, communities, and one another,” said Jonathan Dowst, President of River Run. He continued, “We are thankful to our Board and Corporators for their support and trust in our team to bring River Run to reality. There is a tremendous amount of work being done in the background as we prepare for the official launch of River Run, and this is what provides the foundation for the long-term sustainability of both Banks for the benefit of all of our customers, employees, and communities. This is the most important part, this is why we are here.”
The leadership teams at River Run, Newburyport Bank, and Pentucket Bank are working toward an aligned organizational management structure, with several leadership promotions to be announced. Under River Run, both Banks will maintain their local name, brand, retail, lending organizations, management, and Board of Directors. Corporators will jointly serve as Corporators of River Run. Additionally, a Board of Advisors will be formed for each respective Bank that Corporators previously served. To further the independence of the two Banks, both Banks have instituted charter protections to ensure both organizations remain independent mutual Banks for many decades to come.
Lloyd Hamm, President and CEO of Newburyport Bank, is the CEO of River Run. Jonathan Dowst, President and Chief Executive Officer of Pentucket Bank, is the President of River Run, and will succeed Lloyd Hamm as CEO of River Run upon his retirement.
Since both Banks are mutuals, operating solely for the benefit of their customers, employees, and communities, the partnership is designed to sustain Newburyport Bank and Pentucket Bank as community banking institutions for decades to come, while serving as a model for other mutual banks across New England and beyond. There is potential for other local banks to join the mutual holding company in the future.
About Newburyport Bank
Newburyport Bank is a state-chartered mutual savings bank headquartered in Newburyport, MA. The bank was founded in 1854 and currently has 11 locations in both Massachusetts and New Hampshire and over $1.55 billion in assets. Deposits at Newburyport Bank are federally insured by the Federal Deposit Insurance Corporation (FDIC), with excess insurance provided by the Depositors Insurance Fund (DIF).
About Pentucket Bank
Pentucket Bank is a state-chartered mutual savings bank headquartered in Haverhill, MA, with assets of more than $960 million. The bank was founded in 1891 and currently has 6 full-service community banking offices — three in Haverhill, MA, one in North Andover, MA, and one each in Hampstead and Salem, NH. Deposits at Pentucket Bank are federally insured by the Federal Deposit Insurance Corporation (FDIC), with excess insurance provided by the Depositors Insurance Fund (DIF).