This merger is one of several in recent years — Beverly National Bank and Danversbank in 2010, then Danversbank and People’s United Bank in 2011— that have reduced the number of local banks based on the North Shore.
LaFlamme said this transaction is different than one involving stock-based banks because it preserves a bank that is local to the North Shore.
Bradford said both LaFlamme and Tierney have deep local ties and are community leaders.
LaFlamme was named chairman of the Anna Jaques Hospital board last year. He has served as the hospital’s vice chairman of the board and chairman of the Finance Committee for the past seven years.
Tierney is the past president of the Essex National Heritage Area Commission, Bradford said. Tierney was raised in Peabody and lives in Danvers, he said.
Over the next several months, the banks will merge into one, which will maintain a co-operative bank status. LaFlamme’s new title will be CEO of North Shore Bank and its parent holding company, North Shore Bancorp. Saugusbank’s Tierney will become the president and chief operating officer of both the bank and the bank holding company.
LaFlamme said in a difficult economic climate, so-called “organic growth,” where the bank grows naturally, can be difficult.
“Size is important in this environment,” LaFlamme said. Banks are dealing with an increasing regulatory environment, and it can be expensive to meet these new banking rules.