Worcester Business Journal

4 Worcester Business Journal | May 1, 2017 | wbjournal.com century," said Kowal. "The name emphasizes the foundation of our mutual commitment to our customers and best embodies our culture while promoting the value of integrity and trust that our banks were built on." After everything is finalized, custom- ers will be able to use the combined 15 branches of either bank. Efficiencies, for the future Deciding to either merge banks entirely, or just combine holding com- panies, is a complicated question with a lot of variables, said Bruce Spitzer, director of communications at the Massachusetts Bankers Association. Banks usually merge to create efficien- cies, particularly in the back office and forming a mutual holding company can help streamline management. Combining two banks under one brand can be complicated as it takes away name recognition, he said, but whether two banks combine brands might not get ironed out right away. "Sometimes, later on, the board and management might decide to officially combine the separate brands for even more cost savings, in which case either one of the existing brands survives, or they create an entirely new name and focus on promoting that," said Spitzer. The ultimate decision a bank makes can depend on a variety of things, including market forces, history, com- petition, and how customers and the community will react, he said. "It's not just about cost savings, it's projecting into the future and a desire to continue to be a fixture and force in the local community," said Spitzer. C E N T R A L M AS S I N B R I E F S pencerBANK and Southbridge Savings Bank have taken the merger of their holding compa- nies one step further. Last month, the banks announced they would merge as one institution and rebrand as Cornerstone Bank. The merger will close June 12, pend- ing regulatory approvals. Michael Robbins, CEO of SpencerBANK, will be chairman and CEO of Cornerstone, while Southbridge's CEO, Todd Tallman, will be president and treasurer. Originally, the plan was to merge the holding companies and have each bank maintain its independence, said Lori Kowal, vice president of marketing for SpencerBANK. As time went on, the benefits of merging became apparent. "As a financial partner to many, we knew that individually we were dedicat- ed to making a positive difference in the lives of the individuals who live and those who do business in our communi- ties, and by joining together we could make a real impact," said Kowal. Becoming the Cornerstone At the time of the holding company merger in May, the combined entity had $1 billion in assets and $108 million in equity. With all of that in place, the combined bank will offer its employees more opportunities for growth and con- tinue its good will in the communities it serves, Kowal said. The name Cornerstone Bank was picked after a branding survey. "We are financially strong, locally focused banks with a strong brand loy- alty and local roots that go back over a V E R B A T I M Renewable for everyone "These funds go towards demonstration projects. It really is to go towards how we can create programs and then make them sustainable for the future." Massachusetts Department of Energy Resources Commissioner Judith Judson, on a new $10-million grant program aimed at expanding the use of renewable energy to people who otherwise wouldn't be able to afford it Manufacturing rebound "Almost immediately after the election, orders began to increase again, from all customer sectors. Since January, orders have remained strong. We've been very busy and have begun to hire again." Liora Stone, owner and president of Precision Engineering in Uxbridge, on how business has improved since the end of last year Ride-sharing reversals "The simple truth is ... There were many who had other major crimes that I don't think anybody would want their son or daughter getting in the car to have somebody drive." Gov. Charlie Baker, commenting on the fact that hundreds of Uber and Lyft drivers who failed state background checks successfully appealed their license denials South County banks to merge fully, rebrand W P H O T O / C O U R T E S Y BY LAURA FINALDI Worcester Business Journal Staff Writer The SpencerBANK headquarters in Spencer will soon be known as Cornerstone Bank, if the merger with Southbridge Savings Bank goes through as anticipated in June. Above is the new Cornerstone Bank logo.

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