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Q. Why was GSB open to/seeking a merger in the first place?
A. Mutual banks can be limited in terms of growth capital—a merger is an efficient way to build capital so we can continue to meet the needs of our commercial customers as they grow. Further, the efficiencies gained will allow us to channel greater resources towards our employees and our communities.
Q. When did merger talks begin, and which bank initiated them?
A. Steve and MCB President and CEO, Jeanne Hulit, have known each other for a long time and, about 18 months ago, in an unrelated informal conversation, the topic came up. They truly don’t remember who initiated it but they both immediately saw the benefits a larger, concentrated organization could bring.
Q. Did GSB need to merge because of the recent troubles in the banking industry?
A. Not at all. Our talks began in late spring of 2022—long before any of the banking troubles of early 2023 surfaced. Both GSB and MCB have been and remain well capitalized. This merger simply makes us even more competitive and elevates our market position significantly. It’s a win, win.
Q. Why are you taking the Maine Community Bank name?
A. The combined bank will be called Maine Community Bank, as it speaks to our larger combined footprint and mission to be Maine’s local bank of choice.
Q. What are the three most important reasons behind this merger, with this bank?
A. Customers, employees, and community. This move benefits each greatly today and provides increased opportunity in the future.
Q. Why Maine Community Bank?
A. They are simply such a great match for us. Very complementary and contiguous market geography, very community focused, and a very similar culture to ours.
Q. Will there be layoffs?
A. No.
Q. Will branches be closing/consolidating? Which ones?
A. We share three locations with overlapping branches—we will be making decisions on how best to serve those markets as we work through the integration process.
Q. What does the merger mean for my commercial/small business/personal banking relationship?
A. Your banking experience with us really should not change much at all. You will continue to work with your existing banking team and will soon have more locations to serve you. Down the road, we see potential for improved products and technologies to help you reach your goals.
Q. Are there any immediate changes to products/services/fees/terms?
A. No, not in the short term. There are teams from each bank that will be working together on integration and their work will largely determine what modifications we will consider.
Q. As a GSB customer, can I visit an MCB branch to conduct my business?
A. Not at this time. We will be providing regular customer updates via email as the integration progresses. Be assured that you will have sufficient notice of any changes.
Q. As a GSB customer, can I use my debit card at a MCB ATM with no fee?
A. Not at this time. We will be providing regular customer updates via email as the integration progresses. Be assured that you will have sufficient notice of any changes
Q. Once the merger is finalized, will I be able to continue using my account checks?
A. Yes, you can continue to use your current checks. A dedicated team is working to ensure the integration progresses as smoothly as possible for our customers – we will keep you informed of any potential changes and notify you promptly.
Q. If I have deposits at both banks, with a total in excess of FDIC coverage, what should I do?
A. Until this merger is finalized, there is no cause for action in this regard. Once the merger is complete, we will contact you to ensure your products and services are the best fit for your needs.
Q. I have deposits at Maine Community and Gorham Savings. How will this impact FDIC deposit insurance after the merger?
A. FDIC rules provide a 6-month grace period, to commence once the merger has been finalized (TBD). During the grace period, your deposits remain separately insured by each institution with the same rules, limits, and restrictions. This will allow you to maintain your current coverage and provide time for us to assist in reviewing your deposit relationship to help you make informed decisions.
Q. My current CD/IRA will not mature during the grace period. Will I lose insurance coverage on those accounts after 6 months?
A. No. The grace period on time deposits (certificate of deposits and individual retirement accounts) is extended until the current maturity date. This grace period does not apply to IRA Savings accounts.
Q. If my CD/IRA matures during the grace period and I choose to extend it for a longer duration, will the balances remain insured until their maturity?
A. If you renew the CD for the original deposit amount (with or without accrued interest), your deposits will be covered by the grace period terms until the first maturity date after the six-month period ends.
If you change the dollar amount or term of the CD (even if the original maturity period is no longer offered), the funds will only be insured separately until the initial 6-month grace period ends.
Q. I have deposits at GSB that are currently uninsured because they exceed FDIC limits. Will my coverage increase after the merger?
A. No, unfortunately your FDIC insurance coverage will not increase after the merger. However, we would be happy to review your deposits for potential changes to enhance your coverage.
Q. Do you think more community banks will begin merging?
A. We simply cannot speculate on what other banks may or may not do. GSB is doing what is in the best interests of its customers, employees, and the communities we serve.
Q. When will the merger be final?
A. We expect to close in the third quarter of 2024. Integration/data procuring will follow after the closing.
Q. What will Jeanne’s role and duties be as president once the two organizations are combined?
A. Jeanne will perform a number of leadership functions, but we will primarily leverage her previous experience, in bringing Mechanics Savings and Biddeford Savings together under the Maine Community Bank umbrella in 2020, to ensure that our integration progresses as smoothly as possible.
Q. How do you calculate the combined bank being the second largest in Maine?
A. After the merger is finalized, we will be the second largest mutual bank behind Bangor Savings. Machias Savings will be close behind us. Other banks that are larger than us are national banks with shareholders.