Banking Merger With Cape Connection May Soon Move Ahead

HYANNIS, MA — Two years after completing a merger, the Hyannis-headquartered parent company of bank Cape Cod 5 may soon notch another.

A pending agreement calls for Bluestone Bank, based in Raynham, to join Mutual Bancorp, the holding company of Cape Cod 5. Initial plans were announced in October but still need regulatory approvals.

That process could move forward on Thursday when the state Board of Bank Incorporation holds a public hearing on the merger. Mutual Bancorp has said it expects to complete the deal before this fall.

Bluestone has $1.6 billion in assets. That would bring the holding company’s total to $8.6 billion and make it the largest mutual banking institution in New England and third-largest in the U.S., the October announcement said.

If the merger is completed, Bluestone and Cape Cod 5 will continue to operate under their current names – just as Leominster-based Fidelity Bank has done since merging into Mutual Bancorp in 2024.

Cape Cod 5, formally known as Cape Cod Five Cents Savings Bank, operates 15 branches on the Cape, islands and South Shore. Bluestone and Fidelity each operate more than a dozen branches in southeastern and central Massachusetts, respectively.

“Our teams have worked together to build a thoughtful structure that allows our banks to benefit from shared strength and resources while maintaining their deep local roots,” said Mutual Bancorp CEO Matt Burke in the announcement.