What is a Cooperative Bank?

Greenfield Cooperative Bank has been part of the community since 1905, but what exactly does “cooperative” mean?

Built for the Community

Unlike big national banks that are owned by stockholders, cooperative banks were created by local people to serve local people. Our focus is on the depositor, not outside investors.

When we first opened our doors in 1905, we had:

  • $2,800 in assets
  • 127 depositors
  • 3 loan customers
  • 4 employees
  • 5 directors

Today, we’ve grown to 10 branches, 100+ employees, and 19,000 customers across Franklin, Hampshire, and Hampden counties.

How We’re Different

In the past, the biggest difference between banks came down to who controlled them:

  • Cooperative banks let depositors elect directors
  • Savings banks had trustees running the show
  • National banks were owned by stockholders

Over time, state rules changed so all banks can now offer the same accounts and loans. What sets us apart is ownership. Cooperative and savings banks are mutual banks, which means no stockholders to answer to, our only focus is you.

Why Mutual Still Matters

Being a mutual bank allows us to put our focus where it belongs – on our customers and our community. Because we are not beholden to stockholders, every decision we make is guided by what’s best for the people we serve, not short-term profits.

Your money is also safe here. Deposits are insured up to $250,000 by the FDIC, and anything above that is protected by Massachusetts Depositors Insurance Fund (DIF). This means that 100% of your deposit money is all safety insured.

How We’re Run

GCB is guided by an 11-member Board of Directors and a group of 50 Corporators- local depositors who help represent the community’s voice. Directors are elected for staggered 3-year terms and have a fiduciary duty to select and oversee management of the bank. Even if the bank were ever to consider changing its ownership structure (which we don’t plan to), depositors would have the final say.

At the Heart of It

A cooperative bank is built on a simple idea: put people before profits. That’s what has guided Greenfield Cooperative Bank for 120 years, and it’s why we’re still here for you today.