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SalemNews.com, Salem, MA - July 8, 2011

Salem Five Bank set to add Stoneham Savings as affiliate

SALEM — Salem Five Bank has reached an agreement with Stoneham Savings Bank to operate as affiliates under the Salem Five Bancorp name.

The combined organization will span nearly 30 locations and have $3.1 billion in assets, offering commercial, retail, mortgage, insurance and investment services, according to a press release from Salem Five.

"Stoneham Savings Bank presents Salem Five with a rare opportunity to affiliate with a legacy, quality community banking institution and one that makes a great deal of sense for us," said Joseph Gibbons, Salem Five president and chief executive. "Stoneham Savings Bank's footprint, community immersion, loyal customer base and product lines make them an attractive partner."

Salem Five has assets of approximately $2.8 billion; Stoneham Savings Bank has assets of $350 million.

The agreement will see Stoneham Savings continue to operate under its existing name for three years as a subsidiary of Salem Five Bancorp. Its CEO, Don Fournier, who previously led Beverly National Bank, will remain in his role, and all Stoneham Savings employees will keep their jobs. No branches will be closed, according to the press release. There will be no closures or staff changes at Salem Five.

In April, Salem Five changed its bylaws, solidifying the bank's commitment to its status as a mutual institution.

The Salem Five/Stoneham Savings deal is expected to close in the fourth quarter of 2011, subject to approval from each organization's respective corporators, the Massachusetts Division of Banks, the FDIC and the Federal Reserve.