What is a Mutual Bank?

In short, “mutual” means cooperative. Mutual banks are a form of alternative ownership, in which the bank is ultimately owned by its depositors and governed by a board of Corporators (who are depositors) tasked with stewarding the organization for the long term.

Historically the lifespans of mutuals have far exceeded those of average public and private companies by many multiples. Many mutuals today are over 200 years old. But a new mutual bank had not been formed in many decades. We view it as a model that is ripe for reinvention in the modern era, and a way of giving our impact model “teeth.”

Mutual governance provides powerful strategic alignment in a mission-driven company, allows us to confidently build a brand and business that truly works in the best interest of our customers and community, and allows us to truly focus on the long term.

Note: When our charter was approved by the Federal Deposit Insurance Corp and State of New Hampshire we were the first mutual bank to be approved in over 50 years.