Welcome to ACB’s site devoted to mutual institutions. With the help of ACB’s Mutual Institutions Committee, this site has been developed with the goal of providing information that will educate national and local constituencies about mutuality and the many positive aspects of mutual form of ownership for a community bank. The site also will provide an opportunity for ACB member mutual institutions to share information and to have updates on a regular basis that will be specifically tailored to the impact broader initiatives will have on mutual institutions and mutual holding companies.

From an organizational perspective, mutual institutions are similar to credit unions and other cooperative entities. Mutual institutions are community based and focused. Managers do not need to focus their attention on maximizing shareholder value, rather the earnings generated by the institution can be put back into the institution or can be given to the community. For example, many mutual institutions have established community giving programs that provide for a specified percentage of earnings being given to community projects.

Mutual institutions can offer stability to their local communities. They can remain independent and unless they convert it is difficult for another entity to acquire them. In addition to the stability to the community of maintaining a local financial services provider, employees of the mutual institution do not have to be concerned about the loss of jobs through acquisition and can be more focused on providing services to customers in the community based on local decision-making.

Mutual community banks are considering changes their operating strategies in the same way as all community banks. The attached article describes how several mutual community banks are expanding their lending areas to meet the needs of small business and commercial customers.

If there are other informational items that you would like to see on the site, please let me know. One of the areas that we will try to include is some kind of summary financial information that will help you see where you are among your peers.

Please send any comments, questions, links or good deeds about this site or mutuality to Patty Milon at (202) 857-3121