Stoneham Savings to acquire Leavitt and O'Neil Insurance
Published on July 14th, 1999
STONEHAM, MA - Stoneham Savings Bank will acquire the two largest Stoneham insurance agencies, Robert F. O'Neil Insurance Agency, Inc. and W.G. Leavitt & Son Insurance Agency, Inc., making it one of the first community banks in the Boston area to take advantage of a 1998 state law that lets banks enter the insurance industry.
The bank submitted its plans to Massachusetts banking and insurance regulators, who must approve them for the acquisitions to become final. Bank officials hope to get the green light in 60 to 90 days.
The two agencies, which sell auto, home, life, health and business insurance, will be merged as Leavitt & O'Neil Insurance Agency, which will be Stoneham's largest property-casualty insurance agency.
"This is a perfect fit," said bank president Joseph C. Cioni. "These agencies are highly respected, and, like us, active in the community. By joining, we create synergy and strengthen each other. This move assures the future of a community bank and a community insurance agency in the face of increasing consolidation and competition from big institutions."
Said Kim O'Neil, president of Robert F. O'Neil Insurance Agency, "This gives everyone the opportunity to serve the community better. By merging with the Leavitt agency, we'll have a bigger staff and represent more insurance companies to give us more flexibility in the market."
The agencies will stay in their current offices throughout 1999, and the same staff will be available to serve customers. Sometime next year, the merged agency plans to move into a new Stoneham office. The agency will keep W.G. Leavitt's Wilmington office.
O'Neil will become president of Leavitt & O'Neil Insurance Agency, a subsidiary of Stoneham Savings Bank. O'Neil is vice president of the Massachusetts Association of Insurance Agents and will become the group's president in 2001.
Donald W. Leavitt, president of W.G. Leavitt & Son Insurance Agency, will become a vice president of Leavitt & O'Neil. James R. Miceli, vice president at W.G. Leavitt and a veteran state representative, will also become a vice president of the merged agency.
His daughter, Christina Miceli, manager of W.G. Leavitt's Wilmington branch office, and Donald Leavitt's son, Scott Leavitt, assistant vice president and Stoneham office manager for W.G. Leavitt, will both be named vice presidents at the new agency.
Survey Shows Bank Customers Want More Services
The bank decided to explore selling insurance after it conducted an in-depth telephone survey of 400 customers and non-customers in 1996.
With passage of the 1998 law, the bank moved ahead. It chose the Leavitt and O'Neil agencies because they're among the largest and best-managed agencies in Stoneham, according to Cioni.
To manage the purchase and merger, the bank hired a leading consultant, Gerald C. Vigneron of North Bridge Advisors, Inc. in Concord.
Cioni said entering insurance is the first major step for the bank toward serving the community with a full array of financial services.
While some big banks and mutual fund companies now offer a full gamut of services, it's "revolutionary" for a community bank to do so, Cioni said. But community banks need to broaden their offerings to stay competitive and meet public demand.
"Our mission is 'to be the community's first choice in financial services,'" he said. "The hands-on, personal touch is the key. With us, customers talk with people they know instead of an anonymous representative on an 800 number."
Additionally, Cioni said buying the insurance agencies made financial sense.
Founded in 1855, Stoneham Savings Bank is a mutual bank with $206 million of assets and $157 million of deposits. It has its main office and a branch office in Stoneham, plus a branch office at 601 Chickering Road in North Andover.
W.G. Leavitt & Son Insurance Agency, founded in 1938, sells a full line of insurance from its Stoneham and Wilmington offices.
Robert F. O'Neil Insurance Agency, founded in 1957, is a full-service insurance agency in Stoneham.
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