Newburyport, MA (August 5, 2024) On July 19, 2024, River Run Bancorp, MHC’s (River Run) welcomed a distinguished delegation of bankers from the United Kingdom to its headquarters, offering a comprehensive overview of River Run’s innovative mutual holding company model. River Run, established in 2023, represents a unique structure designed to enhance operational efficiencies and promote sustainable growth while preserving the individual identities of Newburyport Bank and Pentucket Bank.
The visiting delegation, comprised of leading figures from prominent British Building Societies, included:
- Robin Fieth, Chief Executive, Building Societies Association (BSA)
- Simon Taylor, Chief Executive, Melton Building Society
- Vicky Wales, Head of Customer Services, Principality Building Society
- Robert Oliver, Distribution Director, Dudley Building Society
- Chris Hunter, Deputy Chief Executive, Darlington Building Society
- Will Carroll, Chief Executive, Monmouthshire Building Society
The BSA, established in 1869, is the representative body for 42 UK building societies and 7 credit unions. Collectively, these organizations serve nearly 26 million customers across the UK. The BSA advocates for its members by engaging with UK and European regulators and policymakers to ensure favorable outcomes for building societies and their customers. Its mission includes pushing for effective regulation and legislation, providing technical support on a wide array of issues, and addressing key topics such as mortgages, savings, and financial policy.
Lloyd L. Hamm, Jr., CEO and Co-Chairman of the Board of River Run, along with Timothy Felter, Chief Financial Officer; Carol Wilson, Executive Vice President of Operational Excellence and Performance Management; and Terrance McGinnis, Chief Legal Officer, led discussions with the delegation on various aspects of the mutual holding company model. Grant Butler and Stan Ragalevsky of K&L Gates LLP participate in the discussion as well. The robust discussion allowed River Run and the British building societies to exchange ideas. Although they operate in different markets, the discussion was notable for the similarities in the opportunities and issues facing these like-minded institutions
Lloyd Hamm remarked, “We were honored to host our esteemed colleagues from the UK and share our innovative approach to mutual holding companies. The River Run model is a testament to how community banks can enhance operational efficiency and ensure long-term sustainability while maintaining their unique identities. This visit highlighted the global relevance of our model and its potential to address similar challenges faced by banks worldwide.”
Key discussion topics included:
- The rationale behind merging holding companies without merging the banks themselves.
- Comparisons between a multiple bank holding company and a jointly owned services subsidiary.
- Strategic and operational considerations involved in implementing the holding company model.
- Corporate governance, organizational culture, and public reaction.
- The similarities of the opportunities and challenges for mutual banking organizations.
The visit emphasized the growing interest in the potential of the mutual holding company model as a viable solution for banks aiming to maintain their local brand and presence while improving efficiency and competitive positioning in a rapidly evolving financial environment.
About River Run
River Run Bancorp, MHC, the joint mutual holding company for both Newburyport Bank and Pentucket Bank. It was established in 2023 to support and sustain community banking. For more information, please visit www.riverrunmhc.com.
About the Building Societies Association (BSA)
The Building Societies Association (BSA), founded in 1869, represents 42 building societies and 7 credit unions in the UK, serving nearly 26 million customers. The BSA advocates for its members, works with regulators and policymakers, and provides technical information on a broad range of financial topics to support the effective operation and growth of building societies.