The Dukes County Savings Bank and Martha's Vineyard Cooperative Bank, both respected institutions with long histories on the Island, have confirmed plans to merge and become a single community bank with total assets of $460 million.

The Vineyard’s three local banks remain confident of riding out the storm now buffeting world financial markets, thanks to conservative lending practices which largely avoided involvement in the subprime mortgage market.

However, the heads of all three banks this week expressed concern about the effects of the financial crisis on the broader Island economy, given its heavy reliance on seasonal residents and visitors, many of whom will likely have less to spend in the coming year.