Mutual Bank proposes conversion from federal to state charter

BOSTON - June 14, 2013 - PRLog -- Mutual Bank, a community bank with nine branches throughout Southeastern Massachusetts, will seek approval to convert its federal charter to that of a Massachusetts co-operative bank, the Bank's Chief Executive Officer Glen White announced today.

Under a Massachusetts co-operative bank charter, the Bank's depositors' funds will be insured in full, in contrast to current limits under the Federal Deposit Insurance Corporation (FDIC).  A state charter would also enable the Bank to lend larger amounts to qualified borrowers.

Co-operative bank deposits are fully insured:  a depositor's funds are insured by FDIC up to government-set limits, currently $250,000 per depositor, and all funds above the limit are insured by SIF, the Share Insurance Fund of the Co-operative Central Bank.

“Our customers should see no difference in the day-to-day activities of the bank,” said Mr. White, who noted that the changes will provide additional protection of insurance for depositor funds. The Bank’s name will remain Mutual Bank.

Mutual Bank's Board of Directors has unanimously voted to recommend the change to its members, has notified the regulating agencies of its intent, and has called a special meeting of members to be held
July 17, to vote on the plan of conversion.  If approved by a majority of the membership, the Bank will make formal applications to the regulatory authorities.

A bank charter is the legal document which authorizes the bank to conduct business and outlines its rights and responsibilities as granted to it by the federal or state government under which it does business. The charter defines the type of bank and its area of operations.

About Mutual Bank
Mutual Bank is an independent, mutually-owned bank serving the community’s personal and small business banking needs, with nine full-service offices in Brockton, Carver, Falmouth, Halifax, Hanson, Middleboro, Plymouth and Whitman. The Bank has operated continuously as an independent, local institution for more than a century.  The main office is located at 570 Washington Street in Whitman, Massachusetts. For more information, visit www.MyMutualBank.com, or call Christine Grundy, Vice President & Director of Marketing, at 781-447-4488.