Rollstone Bank & Trust (RBT) will become the third community bank operated by River Run Bancorp, MHC (River Run) following the consummation of a merger agreement. The strategic partnership is part of River Run’s effort to adapt to the changing financial services landscape through its mutual community banking model.
RBT will join Newburyport Bank and Pentucket Bank as part of the River Run banking network, serving the northeastern and central Massachusetts markets, as well as the southern New Hampshire market, according to a company press release.
River Run was born out of a 2023 agreement between Newburyport Bank and Pentucket Bank to create a multi-bank mutual holding company, the release stated. The arrangement allowed the banks to consolidate back-office operations, offer additional products and services, and achieve scale and efficiencies, all while continuing to prioritize customer and community engagement.
“We formed River Run to secure the independent community banking model for the future,” River Run President and CEO Lloyd Hamm said in the release. “As community banks face challenges that could impact their long-term sustainability, River Run provides the structure for them to not only survive but thrive. We are thrilled to welcome Rollstone to the River Run family and are confident that, together with Newburyport Bank and Pentucket Bank, we will continue to support the evolution of community banking.”
The combined assets of the three institutions will exceed $3.5 billion, with RBT adding $900 million in assets to River Run’s collective portfolio. The mutual arrangement will enable the banks to offer competitive rates, fees, and personalized service.
Each bank will continue to operate under its established name and brand, retaining its local headquarters, management, retail and lending organizations, and charitable foundations. They also will maintain separate boards of directors.
The River Run charter includes provisions designed to ensure Newburyport Bank, Pentucket Bank, and RBT will remain part of a mutual banking organization.
Along with the merger announcement, RBT announced the upcoming retirement of its president and CEO Martin Connors Jr., which will become effective in mid-2025. Connors will transition to serving as the bank’s executive board chairman for a two-year term.
“Since our founding as Fitchburg Savings Bank in 1846, the banking industry has evolved greatly and is currently undergoing tremendous consolidation,” Connors said in the release. “Through it all, we have served our customers and community with pride. Our dedication has never wavered, nor has our commitment to maintaining our mutuality. Joining forces with Newburyport Bank and Pentucket Bank, and becoming part of the River Run family, will afford us the opportunity to enhance our service offerings and build an even stronger bank for the future.”
RBT Chief Operating Officer Mary Beth Jokela will succeed Connors as president, becoming the first woman to lead the bank in its history.
“I’m grateful to the Rollstone Board of Directors for giving me the opportunity to take on the role of president at Rollstone Bank & Trust,” Jokela said. “I would also like to extend a heartfelt thank you to Marty for his 20 years of leadership. The River Run partnership will benefit our customers and community, and I’m excited to lead the RBTeam through the transition.”
The merger was unanimously approved by the boards of River Run, Rollstone Bancorp, MHC, and RBT. The transaction is expected to close in the first half of 2025, subject to all required regulatory approvals and other customary closing conditions.