Independent Banker - June 2018 - 47

three organizations that weren't fully integrated.
An area that can be especially tricky is blending boards,
particularly when two strong, similarly sized institutions
come together. Cornerstone Bank in Worcester, Mass.,
formed in 2017 when two mutual $550 million-asset
banks merged. Each 150-year-old bank had to get board
approval for the merger and then reduce members to
keep the combined board at a functional size. " Some were
second-generation legacy seats, but we worked through it, "
says Mike Robbins, chairman and CEO. " Everyone made
good decisions about the best interest of the bank. "
At Sunfl ower Bank, choosing members of the leadership
team wasn't about sides. It was about fi t. " In M&A, you
want to end up with the best possible leadership team to
go forward with the business, " Carter says. " It can't just
be win-lose. "
Common pitfalls
Communication about culture from the executive level is
usually strong, notes Weinstock, but the message often
gets lost as it fi lters down through the organization.
The way to avoid this is to build an integration plan for
achieving the bank's objectives by using small, focused
committees with key people from each bank.
Regulatory issues are a key area of focus during and
after a merger, so, for example, these committees could
address everything from remediating Bank Secrecy Act
high-risk customers to applying treasury management
products and services to customers.
" The beauty of the bank deal is that unlike any other
deal, you tend to sometimes have three to six months to
get through regulatory issues, " Weinstock notes. " That's
time to plan for closing and post-closing before you get
there so you have a running start. "
At Progress Bank, its larger geographic footprint made
Eight ways to avoid culture clash
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2
3
4
5
6
7
8
Understand your own culture and find a bank
with a similar one. The transition will be easier.
Be honest about intentions. Don't pretend it's
a merger of equals if one bank is expecting to
be the leader. It's a quick way to lose trust.
Be upfront about expectations at every step.
If people don't know the game plan, staff
won't know how to support it.
Communicate. People are uncomfortable
with change. Beat the rumor mill by keeping
employees aware of relevant developments.
Have a plan to implement changes at all
levels. Executive leadership isn't enough. The
amount of detail involved requires cooperation and
communication from everyone.
Explain what the bank's culture is and why
it is the way it is. It's harder to be mad about
something when you understand the reason.
It's not always effective to take the best of
both cultures. It can create confusion when
everyone is asked to change.
Let employees know where they stand.
Reassure them if they still have jobs by
creating a job description and employment path.
independentbanker.org Q 45
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Independent Banker - June 2018

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