Butler Bancorp’s two bank subsidiaries, Marlborough Co-Operative Bank and Butler Bank, are merging.

Under terms of the agreement, Marlborough Co-Operative will become a subsidiary of Butler Bank. Marlborough's business functions and management will be handled directly by Butler Bank under Janet Bruno, will become president and chief executive officer of the combined entity.

The process began with a merger of the banks’ respective holding companies nearly two years ago.

Bruno said that the bank plans to retain all employees.

“We are thrilled about the positive impact this long-anticipated merger will have in our communities. It will enable us to grow stronger, while maintaining our community banking and customer-focused tradition,” John H. Pearson Jr. who will serve as chairman, said. “By consolidating and leveraging the resources of two banks into one, we will better serve our customers, employees, and community.”

The offices of the combined bank will operate under the same names currently used. The banks plan on keeping their names to capitalize on recognition in their markets.

Further calls to help identify specific advantages presented by the merger have not yet been returned.