In 1886, the town of Stoneham faced a sagging economy primarily due to the weakening of the once prosperous shoe industry. Facing uncertain economic times, Stoneham residents had few places to turn for financial support. It was at this point that a group of Stoneham citizens got together at the Town Office to consider the feasibility of establishing a co-operative bank in Stoneham; an institution they felt critical to assist the town and its citizens in the transition from an industrial center to a residential community populated by individuals working outside of its borders.