A merger between two local banks could mean expansion in the South County area.
Westerly Savings Bank and Newport Federal Savings Bank will merge, meaning five full-service retail banking branches, $257 million in assets and $183 million in deposits.
“This will enhance the entire franchise,” said NewportFed President and CEO Kevin McCarthy.
After the banks merge, Westerly Savings, a state-chartered savings bank, and NewportFed, a federally chartered savings bank, will operate under NewportFed’s federal charter.
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“For the immediate future, each bank will retain its own name,” McCarthy said.
The merger is not expected to result in any job losses or branch closings. While McCarthy said he couldn’t mention any specific sites for new branches, he said the bank has considered several locations in South County.
“We haven’t taken our eye off Newport County either,” McCarthy said. The newly merged bank will have branches in Newport, Middletown, Wakefield and Westerly.
With larger capital assets after the merger closes in the third quarter, McCarthy said he expects the bank to be able to make more and larger loans to small-business and residential customers.
NewportFed offers a Totally Free Checking program for both personal and small-business banking, an asset McCarthy said he expects will enhance the Westerly locations.
“(Westerly) has done a wonderful job with their lending programs, and that will benefit NewportFed,” McCarthy said.
Both banks were founded in 1888 and each emphasizes lending and customer service in their local markets. Each institution has a loan portfolio that comprises more than 80 percent of assets.
“This partnership is not a typical transaction,” said Nino Moscardi, chairman and CEO of Westerly Savings. “Our intent is to enhance customer relationships by expanding our product menu and geographic reach to provide convenience and service, rather than cut costs.”
