Collinsville Savings Society Joins CT Mutual Holding Company

Holding Co CEOs: John Ursone, Dennis Cardello, Mark Macomber and Steve Reilly

The Collinsville Savings Society joined Litchfield Bancorp and Northwest Community Bank as the third affiliate bank in Connecticut Mutual Holding Company.

First established in 2001, the holding company was the first multi-bank mutual holding company in Connecticut. The alliance will enhance each affiliate bank’s ability to better serve its customers and to maintain its status as a profitable, independent institution as the banking industry faces new challenges and continues to consolidate in an era of rapidly expanding technology.

The cost of the holding company will now be split from two banks to three banks. Each bank will still operate independent of each other.

The three banks and the holding company collectively employ about 155 to 165 people. Neither bank is adding positions or eliminating positions relative to their partnership in the holding company.

The mutual holding company employs many former bank employees. Customers benefit through the holding company in that the banks can issue greater loans.

As reported in the press in April 2009, the institutions entered into serious discussions about forming a new partnership in late 2008 and had been talking for about two years. In April, Macomber said that Collinsville Savings is a “great geographical, philosophical and operational fit” for the holding company.

Each affiliate bank will retain its name and state charter and each bank’s Board of Directors and senior management staff will continue to oversee the operations of their respective banks. Independence of action and local decision making for each bank, as well as the preservation of a mutual form of governance, are key attributes of the unique holding company structure.

As contemplated in the holding company’s original goals and successfully realized since its inception, the holding company has held non-interest expenses in check as both Northwest and Litchfield have expanded. Additionally, it has allowed the two banks to jointly develop new services and hire specialists that neither bank could have afforded on its own.

Through the holding company the three affiliate banks will be in a position to optimize the strengths and competitive advantages of each organization and to grow market share in their distinctive markets. With combined resources the overall company will better position affiliate banks to serve their customers with significantly greater loan capacity, leading edge products and services and to implement enhanced technology-based delivery systems. While the banks will continue to operate independently, the holding company will consolidate many of the “back office” functions each bank needs, such as operations, information technology, accounting and human resources.

“Through this partnership our banks will each be better able to provide the high-quality, responsive personal service our customers expect, while maintaining local-decision making by bankers who know their customers and understand their communities,” Macomber said in a statement.

Macomber, Reilly and Cardello say they personally share a mutual respect and trust and that the banks themselves enjoy similar corporate structures. They pointed to the advantages of their geographic proximity, complementary yet distinct market areas, common systems platforms, and their fundamental commitment to delivering high-quality customer service. All current employees will continue with the expanded organization and will enjoy enhanced career opportunities.