Cornerstone Bank, a subsidiary of PeoplesBancorp, MHC, and Athol Savings Bank announced today the execution of a merger agreement, pursuant to which Athol Savings Bank (“ASB") will merge with and into Cornerstone Bank, which will expand Cornerstone into a new and vibrant region in north central Massachusetts. As part of the merger, ASB will operate as a division of Cornerstone Bank, maintaining its name and five branch locations. This strategic move allows Cornerstone Bank to bring its full suite of digital banking services and customer-focused innovations to an expanded clientele, while preserving the trusted local brand that ASB has built.

“This is an incredibly exciting time for us,” said Todd Tallman, CEO of Cornerstone Bank. “We are growing. Athol Savings Bank has a great team, and its mission, values and commitment to mutuality align seamlessly with ours. This move will strengthen our ability to serve our communities while preserving our focus on customer service. Our combined scale will make us more efficient, expand product offerings and improve customer service through shared resources and technology. In today’s industry, scale matters.”

ASB’s strong financial performance and customer-first approach align well with Cornerstone’s commitment to growth and innovation. Customers can expect the same seamless, local service with even better technology and improved access to financial planning tools on a robust digital platform, elevating their overall banking experience. Further, as a combined organization, it will allow for enhanced commitment to charitable giving, community involvement and volunteerism in the North Quabbin region.

ASB staff will be retained and fully supported throughout the transition, with significant focus made to ensure continuity in roles by offering the same or similar positions. This collaboration is rooted in growth, not reduction.

In a key leadership transition, Daniel J. Zona, the current President and Chief Executive Officer of ASB, will assume the role of President of Cornerstone Bank, succeeding Randal Webber, who announced in March that he will be retiring. The Cornerstone Bank Board of Directors will also expand to welcome four new members, including Mr. Zona, helping to round out leadership representation across the newly expanded region the bank will now serve.

“I’m honored to lead Cornerstone Bank into this next chapter,” said Zona. “Both banks share a commitment to our community, employees and customers. Together, we can achieve strategic growth while maintaining a community-first approach rooted in mutual values.”

Completion of the transaction remains subject to approval by the corporators of ASB, as well as regulatory approval. The closing is expected to be final in the first quarter of 2026.

Luse Gorman, P.C. served as legal counsel for Cornerstone Bank, while Piper, Sandler & Co. served as Financial Advisor. Updike, Kelly & Spellacy, P.C. served as legal counsel for ASB.

Cornerstone Bank’s Customer Appreciation Day, held Saturday, July 12, at its newly renovated Spencer Branch, was more than just a celebration; it was a meaningful show of gratitude and community support that included $10,000 in charitable donations to two local nonprofits.

The festive, family-friendly event welcomed community members to the branch for a morning filled with games, giveaways, complimentary ice cream from Suzy Q’s Ice Cream Truck and photos with Moola the Cash Cow. The highlight of the day was a special donation presentation, during which Cornerstone Bank awarded $5,000 checks to two deserving Spencer-based organizations.

The recipients were:

• Beautifying Oncology Spa Services (B.O.S. Inc.) to support its mission of providing free spa and hair services to individuals undergoing chemotherapy or radiation treatment. The nonprofit helps restore confidence and well-being to those facing the physical and emotional challenges of cancer.

• Cole W. Victor Memorial Foundation Inc., which honors the memory of Cole Victor, a beloved local resident, and has made a lasting impact on the Spencer community through initiatives such as a new public park gazebo and scholarships for local students.

“This day was all about giving back to our customers, our neighbors and the organizations that make Spencer such a special place,” said Todd Tallman, CEO of Cornerstone Bank. “The turnout was incredible, and we were especially honored to support these two nonprofits doing such meaningful work in our community.”

The event also marked the public unveiling of the branch’s modern renovations, designed with comfort and convenience in mind, reflecting Cornerstone Bank’s continued commitment to serving customers and investing in the communities it calls home.

Cornerstone Bank thanks all who attended and looks forward to continuing its tradition of community connection and local support.

Cornerstone Bank is excited to welcome the public to a festive, family-friendly Customer Appreciation Day at its newly renovated Spencer Branch on Saturday, July 12th, from 9 a.m. to 1 p.m. at 176 Main Street, Spencer, MA.

This special event is a celebration of the branch’s modern updates and, more importantly, a heartfelt thank you to the loyal customers and community members who have supported Cornerstone Bank throughout the years.

“This event is all about saying thank you,” said Todd Tallman, CEO of Cornerstone Bank. “Our customers are the reason we’re here, and we’re excited to celebrate them while also unveiling the fresh new look of our Spencer Branch. We hope families, friends and neighbors will stop by to enjoy the fun and see what we’ve been working on.”

Event highlights include:

• Complimentary Ice Cream from Suzy Q’s Ice Cream Truck
• Games and giveaways for all ages
• Photos with Moola, the Cash Cow
• Local donation presentations at 12 p.m. 

The newly renovated Spencer Branch was designed with customer convenience and comfort in mind, reflecting Cornerstone Bank’s ongoing commitment to exceptional service and community investment.

Cornerstone Bank is pleased to announce the promotion of Elizabeth Dunn to Vice President of Benefits. She previously served as assistant vice president, HR business partner. In her new role, she will lead the development, implementation and management of Cornerstone’s employee benefits programs, ensuring compliance, cost-effectiveness and employee satisfaction, while also advising on strategic planning and vendor relationships.

“Lyz has more than a decade of valuable experience in her field, and is intimately familiar with our culture,” said Cornerstone CEO Todd Tallman. “She has demonstrated expertise in administering and overseeing comprehensive benefits programs, ensuring compliance with federal and state regulations while monitoring the effectiveness of our health and welfare offerings.”

Dunn is a Nichols College graduate and a member of the Society for Human Resource Management. She also volunteers with Habitat for Humanity and the Community Harvest Project.

Cornerstone Bank has donated $15,000 to the Central Massachusetts Sparks Association. The organization aids Central Massachusetts firefighters and police officers through the Rehab-7 Incident Support. Cornerstone’s donation will help pay for a trailer stocked with life-saving gear such as water, blankets and protective essentials that will travel to every incident.

“Our heroes on the front lines deserve our full support,” said Cornerstone CEO Todd Tallman. “We know firefighters and police will be there for us whenever we need them. We want to reciprocate and empower them to continue their important work as safely as possible in our community.”

The Central Massachusetts Sparks Association and Rehab-78 were recently created to support first responders. Organizers plan to outfit the trailer with shelving, storage containers and supplies such as disposable wipes to remove potential carcinogens from skin. They will bring it to fire and police incidents in Southbridge, Charlton, Sturbridge, Oxford, Spencer, Leicester, Holden, Rutland and Monson. The trailer will also provide supplies incident victims might need until the American Red Cross or other help arrives.

“We think this is a great concept,” said Tallman. “It has the potential to help countless people, from those putting their lives on the line, to victims going through some of the worst moments of their lives. We hope our contribution goes a long way.”

Cornerstone Bank has donated $10,000 to Shrewsbury Youth and Family Services, Inc. (SYFS). The private, non-profit organization provides counseling, school-based services, social services and mental health support for children and families in Central Massachusetts.

SYFS works with an average of more than 800 families a year. Programs address challenges such as anxiety, depression, child abuse, homelessness, domestic violence, divorce and many other issues. For more than four decades, the organization has adapted to the changing needs of the community through partnerships with state and local government, police departments, schools, churches and other social service agencies. These collaborations create a safety net for children in need.

“We’ve always believed in the power of investing in youth,” said Cornerstone CEO Todd Tallman. “Shrewsbury Youth and Family Services has an impressive record of changing the trajectory of children’s lives, setting them up for success.”

This is the third year in a row Cornerstone has donated to SYFS programs aimed at uplifting young lives.

“SYFS serves all families in need, regardless of a person’s financial situation,” said Tallman. “We believe everyone should have access to the services they need to thrive. We’re proud to support that mission.”

Pictured:

Left: Fred Kaelin, Executive Director of Shrewsbury Youth and Family Services

Right: Joel Laureano, Vice President, Senior Market Manager of Cornerstone Bank's Shrewsbury Branch

Cornerstone Bank is donating $15,000 a year for the next three years, a total contribution of $45,000, to the Worcester State Foundation for the university’s STEM Connections program. The gift continues Cornerstone Bank’s generous multi-year support of various STEM initiatives at Worcester State.

“This donation is personal for me,” said Cornerstone Bank President Randy Webber, who graduated from Worcester State University with a B.A. in business administration and sits on the board of the Worcester State Foundation, a non-profit organization dedicated to advancing the mission of the university. “I cherish my time spent at Worcester State, and I’m proud to be able to support the academic endeavors of students there now.”

The university’s STEM Connections program focuses on engaging junior and senior high school students from Worcester public high schools in fun and informative hands-on laboratory and data analysis projects at the Worcester State campus. Professors from chemistry, biology and environmental science lead the program, and a Worcester State student serves as the teaching assistant. The participants take field trips, hear from local experts, and participate in a variety of learning activities to encourage a love for science. The program also introduces pathways to higher education in STEM fields. Students gain valuable knowledge and skills about navigating the college application process through presentations by the university’s admissions and financial aid teams.

The program is one of the university’s signature summer educational programs, said Worcester State Vice President for University Advancement Tom McNamara. “The Cornerstone STEM Connections program has a tremendous impact on students by igniting their enthusiasm for science, building confidence, and enabling them to envision a future college education in STEM.

We are tremendously grateful to Cornerstone Bank for providing this multi-year support. This gift represents an important investment in the future workforce for our region.”

“I hope this donation helps open doors for students the way Worcester State helped me build a strong foundation for a rewarding career at Cornerstone Bank,” said Webber. “The future is bright.”

Cornerstone Bank has donated $25,000 to the YMCA of Central Massachusetts for the fifth year straight. The money will support programs that build academic skills and help kids develop as future leaders.

“The YMCA is a place where children form lasting positive relationships with peers and mentors,” said Cornerstone CEO Todd Tallman. “We’ve seen how powerful that can be.”

Thousands of teenagers attend the YMCA of Central Massachusetts’ many programs every year, including summer camp, after-school activities, internships, food assistance, education, mental health assistance and programs for cancer survivors. Cornerstone Bank’s donation will help ensure that children continue to have access to these life-changing programs regardless of their financial means.

“The Y gives children the tools they need to develop into healthy and socially responsible leaders,” said Tallman. “We’re proud to have a small part in uplifting that important mission.”  

Rainy weather didn’t stop a big crowd from gathering outside the newest location for Cornerstone Bank. The ribbon-cutting event at 1125 Pleasant Street in Worcester’s Tatnuck Square marked the successful opening of Cornerstone’s 12^th location and included the unveiling of an original sculpture by a popular local artist.

“This artwork captures the cultural essence of this vital neighborhood we are so excited to serve,” said Al Ahmed, Cornerstone Bank’s EVP of retail banking. “We’re proud that our Tatnuck location features our best forward-thinking, user-friendly technology. It’s an important place for us to be at a pivotal time in Cornerstone’s growth.”

The sculpture, which lights up from the inside, was created by Aaron Stephenson and José Criollo, whose work is made of locally recycled metals and wood and can be seen in public areas throughout Worcester. The piece is topped with Cornerstone’s logo and shows four different iconic views of the city of Worcester.  

Worcester Mayor Joseph Petty and Massachusetts Senator Robyn Kennedy joined other dignitaries at the family-friendly grand opening celebration, which featured a bouncy house, ice cream truck, giveaways and games.

Cornerstone Bank has been renovating the property since purchasing it last year. The full-service branch includes two drive-up lanes with ATM capabilities and state-of-the-art, drive-up, live video tellers available during banking hours. Inside, there are specialists dedicated to lending and investment consultation, available by appointment only.

The new Tatnuck Square Branch is open Monday through Wednesday from 8:30 a.m. to 4 p.m., Thursday from 8:30 a.m. to 6 p.m., Friday from 8:30 a.m. to 5 p.m. and Saturday from 8:30 a.m. to 1 p.m. The branch is closed on Sundays.

Cornerstone Bank has donated $5,000 to Trinity Catholic Academy in Southbridge. The money will help fund a new playground for students, as the current space is limited to a portion of the school’s parking lot.

“Students deserve a safe and relaxing place to take a break and play during their busy school day,” said Cornerstone Bank CEO Todd Tallman. “Studies show children develop critical social and cognitive skills on the playground. That’s why we felt this was so important to support.”

The new playground, called Bobcat Park, will occupy part of the school’s upper left lot. Trinity’s goal is to build a safe, welcoming space for children to play during recess. The school also plans to make the playground available to the public to benefit the Southbridge community.   

“We hope our contribution brings Trinity Catholic Academy closer to this dream,” said Tallman. “It’s hard to imagine what school would be like without the joys of recess.”

Over the past three years, Cornerstone has also donated to Trinity Catholic Academy to help pay for textbooks and other school supplies.