Athol Savings Bank and Cornerstone Bank announce merger, enhancing technology and local access

ATHOL – Athol Savings Bank will merge with Cornerstone Bank in a move expected to be finalized in early 2026, pending regulatory approval.

Leaders from both institutions say the partnership will expand services, modernize technology and improve access to local banking across central Massachusetts.

Founded in 1867, Athol Savings Bank has served generations of customers in the North Quabbin region with a focus on local decision-making and personal service. Cornerstone Bank, established in 2017 and headquartered in Worcester, operates multiple branches across central Massachusetts and offers a range of digital and commercial banking services.

Athol Savings Bank President and CEO Daniel J. Zona said the merger reflects how much the banking industry has shifted for smaller institutions.

“Banking has become a bit of a scale industry,” he said. “The cost to run a bank and the regulatory burdens have created a lot of pressure in that regard.”

Zona, who has known members of Cornerstone’s leadership team for years, said the idea of joining forces grew as both banks looked for ways to expand without overlapping branches or losing local focus.

He explained how both institutions share a mutual savings bank structure.

“Our depositors are really the owners of the bank, and that’s who we serve, our customers and our communities,” he said.

Under the merger agreement, Athol Savings Bank will operate as a division of Cornerstone Bank, keeping its name and five branch locations. Zona said customers should expect a smooth transition, with the same staff and offices in place. The main changes will be on the technology side, with improved online banking tools, touchless debit cards, and Apple Pay.

“What Cornerstone is bringing to this, and it was very attractive to our bank, is enhanced technology,” Zona said. “When you couple that with community and customer-first approaches, it really makes it more powerful.”

In a press release announcing the merger, Cornerstone Bank CEO Todd Tallman called the partnership “an incredibly exciting time” for both institutions.

“Athol Savings Bank has a great team, and its mission, values and commitment to mutuality align seamlessly with ours,” Tallman said. “Our combined scale will make us more efficient, expand product offerings and improve customer service through shared resources and technology.”

For Zona, the most rewarding part of the merger is what it means for the people and organizations the bank supports.

“We try to invest as much as we can back into the community,” he said. “We’ll be able to expand our community donations and, pretty exciting as far as I’m concerned, invest more time. We can participate in volunteerism to a greater extent.”

Once the merger is finalized, Zona will become president of the combined Cornerstone Bank, succeeding retiring president Randal Webber.

He said the goal is to build on Athol Savings Bank’s long history of service while positioning it for the future.

“The North Quabbin region needs all the support it can get,” Zona said. “And we want to be there to help do so.”