Cornerstone Bank, a subsidiary of PeoplesBancorp, MHC, and Athol Savings Bank announced today the execution of a merger agreement, pursuant to which Athol Savings Bank (ASB) will merge with and into Cornerstone Bank, which will expand Cornerstone into a new and vibrant region in north central Massachusetts. As part of the merger, ASB will operate as a division of Cornerstone Bank, maintaining its name and five branch locations. This strategic move allows Cornerstone Bank to bring its full suite of digital banking services and customer-focused innovations to an expanded clientele, while preserving the trusted local brand that ASB has built.
“This is an incredibly exciting time for us,” said Todd Tallman, CEO of Cornerstone Bank. “We are growing. Athol Savings Bank has a great team, and its mission, values and commitment to mutuality align seamlessly with ours. This move will strengthen our ability to serve our communities while preserving our focus on customer service. Our combined scale will make us more efficient, expand product offerings and improve customer service through shared resources and technology. In today’s industry, scale matters.”
ASB’s strong financial performance and customer-first approach align well with Cornerstone’s commitment to growth and innovation. Customers can expect the same seamless, local service with even better technology and improved access to financial planning tools on a robust digital platform, elevating their overall banking experience. Further, as a combined organization, it will allow for enhanced commitment to charitable giving, community involvement and volunteerism in the North Quabbin region.
ASB staff will be retained and fully supported throughout the transition, with significant focus made to ensure continuity in roles by offering the same or similar positions. This collaboration is rooted in growth, not reduction.
In a key leadership transition, Daniel J. Zona, the current President and Chief Executive Officer of ASB, will assume the role of President of Cornerstone Bank, succeeding Randal Webber, who announced in March he will be retiring. The Cornerstone Bank Board of Directors will also expand to welcome four new members, including Mr. Zona, helping to round out leadership representation across the newly expanded region the bank will now serve.
“I’m honored to lead Cornerstone Bank into this next chapter,” said Zona. “Both banks share a commitment to our community, employees and customers. Together, we can achieve strategic growth while maintaining a community-first approach rooted in mutual values.”
Completion of the transaction remains subject to approval by the corporators of ASB, as well as regulatory approval. The closing is expected to be final in the first quarter of 2026.
Luse Gorman, P.C. served as legal counsel for Cornerstone Bank while Piper, Sandler & Co. served as Financial Advisor. Updike, Kelly & Spellacy, P.C. served as legal counsel for ASB.
About Cornerstone Bank
Cornerstone Bank ($1.65 billion institution) was formed in 2017, born of a long history of supporting the community, and providing a strong foundation to help people and businesses thrive. Serving Worcester County, Cornerstone Bank’s local presence and community-based banking model enables a unique ability to deliver outstanding service, with a personal touch. Cornerstone provides the highest level of service and expertise for individuals, businesses, and community organizations with branch locations throughout central Massachusetts. Cornerstone works to connect customers with opportunities through a broad range of deposit and loan products and services. Built on Trust is not just a tagline, but also one of our guiding corporate values. Whether a business or personal partnership, Cornerstone stands on the foundation that relationships are built on trust. To learn about Cornerstone Bank’s personal and business banking offerings, please visit cornerstonebank.com or call 800-939-9103.
About Athol Savings Bank
Founded in 1867 in Athol, Massachusetts, Athol Savings Bank ($650 million institution) has built a legacy of local service, integrity and trust for over 150 years. As a mutual savings bank, we answer to our customers, not shareholders, offering personalized financial solutions with a focus on community values. We are committed to continuous improvement, planned growth and delivering strength, stability and security to those we serve. As “A Solutions Bank,” we strive to meet the evolving needs of our customers and communities every day. To learn more about Athol Savings Bank, A Solutions Bank, please visit ibankasb.com or call 888-249-3200.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250729098670/en/
“This is an incredibly exciting time for us,” said Todd Tallman, CEO of Cornerstone Bank. “This move will strengthen our ability to serve our communities while preserving our focus on customer service."
Contacts
Christina Hager or Sue Spiry
(413) 787-1133
Chager@marketmentors.com