Bank CEO: No layoffs or closures

SAUGUS – The Saugusbank sign still overlooks Route 1 south, however, the facade of the branch at 412 Lynn Fells Parkway is blank, waiting to be rebranded as North Shore Bank on Sept. 1.David LaFlamme, chief executive officer of North Shore Bank, explained that the net worth of his institution will swell to $700 million as a result of the acquisition, which was first announced on Feb. 13.”We’ve created some scale here at $700 million,” said LaFlamme. “This didn’t happen overnight.”In addition to having 11 branches, the number of employees will grow to 150 and the customer base will expand to 21,000.However, LaFlamme explained that despite the large numbers, North Shore Bank will still be categorized as a smaller community bank. Therefore, he vowed that there will be no layoffs or branch closures as a result of the two banks coming together. He added that this is stated in the banks’ “definitive agreement” and is backed by their boards of directors.Kevin Tierney, chief executive officer of Saugusbank, pointed out that his customers’ primary concern was whether or not current employees would remain on staff following the merger.He called attention to the generational nature of his clientele, saying that many of his current customers had grandparents who were customers of the bank as well.”We’re making local decisions for our local customers,” said Tierney.As for the merger itself, LaFlamme said he was selective in deciding which bank would be right for the merge.”This transaction would not have been attractive to me if it weren’t for Kevin,” he said.Following the rebranding, Tierney will take on the role of chief operating officer while LaFlamme will remain the chief executive.”These types of transactions don’t happen unless you have trust,” said Tierney.He added that the merger will give his bank the necessary resources to compete with the “big guys.”Tierney explained that Saugusbank has been in need of human resources and information technology personnel for quite some time. However, that need will be eradicated as North Shore Bank already has those professionals in place.He said that lower fees, higher debit card limits and a 10-day grace period to renew certificates of deposit are just a few of the new products that his customers will enjoy.In speaking about the status of the financial industry and the economy, both executives agreed that they are still in a “challenged state,” although interest rates have become competitive once again.”The economy is okay, it’s not great,” added LaFlamme.Tierney pointed out that more stringent regulations have been implemented since the recession, applying to all banks regardless of size.”We have to comply with the same regulations of a bank 10 times our size,” said Tierney. “There’s a lot of headwind now for community banks.”He pointed out that North Shore Bank and Saugusbank were two of the few institutions that did not struggle during the economic downturn. He said that the banks that failed did so because they “got away from their basics.””The branches are our customer contact,” said Tierney.