Local banks merge to form Avidia Bank
By Ken Powers Contributing Writer

Region - When it was announced 11 months ago that Hudson Savings Bank and Westborough Bank would merge and become one financial institution with nearly $1 billion in assets, it wasn't expected to take as long as it has.

The banks have worked out all the details, however, and on Monday Oct. 22, new era in local banking will dawn when the banks formerly known as Hudson Savings Bank and Westborough Bank will open their doors as one - Avidia Bank.

"The name Avidia is derived from the root word avid, meaning enthusiastic," said Mark O'Connell, president and CEO of Hudson Bank, who will have the same title at Avidia Bank following the merger. "We feel it's a name that will diff erentiate us in the marketplace."

Officially, the agreement to become one was negotiated between the banks' parent companies - Assabet Valley Bancorp, parent of Hudson Savings Bank, and Westborough Financial Services Inc., which owns Westborough Bank.

Joe MacDonough, president and CEO of Westborough Bank and Westborough Financial Services, will become president and CEO of Assabet Bancorp when the merger becomes official next week. He will also serve as executive vice president of Avidia Bank.

Avidia Bank will be headquartered in Hudson and have 10 branches, located in Hudson, Westborough, Marlborough, Shrewsbury, Northborough, Clinton and Leominster.

O'Connell said no branches will close and no layoff s of the more than 200 employees will occur because of the merger.

"We really feel the merger is going to create greater convenience for customers of both banks," O'Connell said. "Our customers are going to have more branches at their disposal as well as double the amount of ATMs.

"We will still be a community bank, but at a billion dollars in assets, we will be bigger than most community banks," O'Connell added.

O'Connell said companies and individuals interested in commercial lending will benefit greatly because of the combination of assets Hudson is reportedly bringing $655 million in assets into the merger, Westborough about $300 million.

"Avidia Bank will also have full-blown trust power," O'Connell said, "much more extensive than either individual bank had. We believe we will be a stronger institution with a higher lending capacity."

The merger of the banks was expected to be consummated in March or April but was delayed by a lawsuit that was only recently settled.

"It's been a long process, longer than we expected it to be," O'Connell said. "Some Westborough shareholders were not happy with the stock buyout price we off ered, but it was confirmed by a judge that our price was fair and equitable."

The bank's board will comprise 24 members - nine Westborough Financial Directors and 15 Hudson Savings Bank directors. All trustees and corporators of Westborough Financial Services will be elected or appointed to Assabet Valley Bancorp's boards of trustees and corporators.