MIDDLEBORO, Mass., Sept. 21 /PRNewswire-FirstCall/ -- Mayflower Co-operative Bank (Nasdaq: MFLR) announced today that its stockholders have approved a Plan of Reorganization and Acquisition (the 'Plan') under which the Bank will reorganize itself into a holding company structure.

The Bank's Board of Directors had previously recommended the formation of a holding company as a means by which the Bank could raise capital, provide the Bank with greater flexibility in structuring possible acquisitions, and allow greater diversification of its activities.

In connection with the Plan, Mayflower Bank will form a new Massachusetts holding company that will exchange shares of its common stock for shares of Mayflower Bank's common stock on a one-for-one basis. The Plan is now subject only to regulatory approval.

Commenting upon stockholder approval of the Plan to Reorganize, President and CEO Edward M. Pratt said, 'We are especially pleased to make this announcement, as we believe the advantages of a holding company structure will benefit all Mayflower stockholders and serve to enhance the long-term value of their investment in the Bank.'

During the reorganization, the business of Mayflower Bank will continue normally and without interruption. The reorganization will have no affect whatsoever on existing deposit accounts and loans. All accounts will remain insured up to applicable limits by the Federal Deposit Insurance Corporation (FDIC).

Mayflower Co-operative Bank is a Massachusetts state chartered co-operative bank specializing in residential and commercial lending and traditional banking and deposit services. The Bank currently serves southeastern Massachusetts from its Main Office in Middleboro and maintains additional full-service offices in Bridgewater, Lakeville, Plymouth, Rochester and Wareham, Massachusetts. All of the Bank's deposits are insured by the Federal Deposit Insurance Corporation (FDIC) and by the Share Insurance Fund (SIF) of Massachusetts.

This press release may contain certain forward-looking statements, which are based on management's current expectations regarding economic, legislative and regulatory issues that may impact the Bank's earnings in future periods. Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, real estate values and competition; changes in accounting principles, policies or guidelines; changes in legislation or regulation; and other economic, competitive, governmental, regulatory and technological factors affecting the Bank's operations, pricing, products and services.

SOURCE Mayflower Co-operative Bank