Update on Stockbridge State Bank and Eaton Federal merger

While the recently announced Stockbridge State Bank (SSB) merger with Eaton Federal came as a surprise to many in the community, it is not uncommon in the industry.

by Cindy Lance

While the recently announced Stockbridge State Bank (SSB) merger with Eaton Federal came as a surprise to many in the community, it is not uncommon in the industry. Tim Jewell, President, and CEO of Eaton Federal stated, “The ever-increasing costs of technology and regulatory compliance have become a huge challenge for small banks who cannot spread those costs over a large customer base. Small institutions often serve smaller, rural communities, which offer limited growth potential, thus making it difficult for those banks to grow to a size that is sustainable. Merger with another, larger institution often becomes the best option. SSB was wise to explore that option at a time when it was still financially sound and the economy was good—it got to choose the partner it wanted that is similar to them and would continue to provide small bank service to their communities.”

The merger still has to be approved by the bank regulatory agencies, and the anticipated closing is around June 30, 2018. Once complete, it will take several months to transition SSBBank’s accounts onto Eaton Federal’s systems. During that time, SSBBank offices will continue to serve their customers just as they are now. Upon conversion of the accounts, customers will be able to use any Eaton Federal location or service. The terms of SSB loans will not be impacted by the merger, and deposit accounts will be converted to the most similar Eaton Federal account type.

“Eaton Federal is committed to provide as much continuity as possible during this transition and beyond. We have asked current Vice Chairman Jeff Caskey to join Eaton’s board and current Chairman Ben Dancer to assist Eaton Federal’s Board as a Director Emeritus after the merger is complete. In addition, two senior officers have agreed to join Eaton Federal’s staff: Bob Dickins, current President of SSBBank, will become the area manager overseeing the Stockbridge and Gregory offices, and Tom Schroeder, current EVP, and Chief Lending Officer, will join Eaton Federal as a commercial loan officer. It is anticipated there will be little if any change to the front line staff of the Stockbridge and Gregory offices.”

It is expected that SSBBank customers will enjoy new and improved services after the merger, such as improved online and mobile banking, expanded mortgage options, a great construction loan program, and many more. Mr. Jewell also noted “like SSBBank, Eaton Federal offers personal, hometown service and decision-making. We are very community focused and will continue and likely expand upon SSBBank’s activities in its communities. We are a mutual association, meaning we are owned by our customers. We exist solely for the benefit of our customers and communities.”