AUBURN — A plan by Mechanics Savings Bank and Biddeford Savings Bank to form a mutual holding company meant to strengthen both banks was approved by the banks’ corporators and depositors this week.

The banks have already received conditional approvals to proceed with the partnership from the Federal Depositors Insurance Corp. and the Maine Bureau of Financial Institutions. The final approval required is from the Federal Reserve bank, according to a statement from the two banks.

Once that approval is received, both banks will become subsidiaries of Maine Community Bancorp. Each bank will retain its name, mutual form of ownership, state charter and status as a community bank.

Further, Mechanics Savings President and CEO Richard J. Vail and Biddeford Savings President and CEO Charles M. Petersen will serve as co-CEOs of the new holding company while continuing to serve as leaders of their respective banks.

The partnership will give both banks greater loan capacity, offer the ability to develop new products, services and technology, and create cost efficiencies that will benefit both banks, according to the banks.