LEOMINSTER — Fidelity Bank and Cape Cod 5, based in Hyannis, announced Thursday that they have reached an agreement to merge their respective mutual holding companies under one multibank holding company, Mutual Bancorp.
Both banks will continue to operate independently as two separate financial institutions maintaining their respective names and brands, while continuing their missions and service to their clients and communities. The deal is still subject to regulatory approval.
The mutually-beneficial partnership of two financially-strong and secure institutions under a multibank holding company structure will enhance the capabilities of each organization. It will also allow for collaboration, shared services, and pooled resources between the banks to better meet the needs of their clients in an evolving industry landscape.
Fidelity Bank, based in Leominster, holds $1.5 billion in assets with 13 banking centers throughout Eastern and Central Massachusetts. Cape Cod 5 holds over $5.5 billion in assets with 26 locations across the Cape, Islands, and in Southeastern Massachusetts.
Under the agreement, Edward F. Manzi, Jr. will remain in his role as Chairman and CEO of Fidelity Bank and serve as Vice Chairman, Chief Strategy Officer of Mutual Bancorp, and Matt Burke will remain in his role as Chairman and CEO of both Mutual Bancorp and Cape Cod 5.
Once finalized, Mutual Bancorp will have combined assets of more than $7 billion and will oversee and govern the strategic operations of both Fidelity Bank and Cape Cod 5.
“We are so excited to partner with such a like-minded institution as Cape Cod 5. The cultural fit between our organizations is simply amazing,” said Manzi. “This excellent partnership will allow us to add specialized products and services such as trust and wealth management into our full suite of offerings and continue delivering the benefits of LifeDesign banking to our clients, community, and colleagues for many years to come.”
Burke said that the partnership made sense on many levels, including business culture.
“Fidelity Bank and Cape Cod 5 are both long-standing institutions with very similar cultures and values. We both focus on personalized service to consumers and businesses, and a commitment to making a positive impact in our communities,” said Burke. “This partnership will strengthen Mutual Bancorp and enable us to utilize shared resources and best practices so that each bank can grow in size, strength, and offerings to customers.”
As part of the partnership agreement, Fidelity Bank will form a $5 million charitable foundation, providing increased and ongoing support to non-profit organizations, causes, and events in their market areas. Cape Cod 5 has an established foundation through which it will continue to support its communities.
(Courtesy Fidelity Bank)