East Boston Savings Bank and Rockland Trust announced last week that the two banks have inked a merger agreement for Rockland to acquire EBSB’s parent company, Meridian Bancorp., thus acquiring EBSB in a $1.15 billion deal.
Under the agreement each Meridian stockholder will receive 0.275 of Rockland common stock for each share of Meridian common stock.
According to the two banks the merger is expected to close in the fourth quarter of 2021.
EBSB President and CEO Richard Gaveganao said last week this transaction brings together two strong banks with a long and rich history serving and investing in local communities.
“We are excited to join a like-minded organization dedicated to creating exceptional customer experiences, built on trust and quality service, while also providing an attractive return to our stockholders,” said Gavegnano.
Rockland President and CEO Christopher Oddleifson added this merger is consistent with Rockalnd’s strategy of acquiring banks in overlapping and adjacent markets who share his bank’s “relationship-focused style of banking”.
“East Boston Savings Bank has been committed to building meaningful connections with their customers since 1848 and we are excited to work alongside them to deepen those relationships with expanded products, services, and technology,” said Oddleifson. “At the same time, we look forward to increasing our presence in and around the city and reinforcing our position as the Boston area’s premier community-focused commercial bank.”
EBSB currently has 42 full-service locations, one mobile branch and three loan centers in the greater Boston metropolitan area.
As of March 31, 2021 Meridian had $6.5 billion in total assets, $5.3 billion in loans, and $5.1 billion in deposits.
“Following this merger, Rockland will have approximately $20 billion in assets,” said Oddleifson.. “In addition to the market leading commercial lending capabilities, this acquisition will further enhance our core deposit franchise value and allow for the expansion of Rockland’s broad financial product set to an expanded business and consumer customer base.”
The boards of directors of each company have unanimously approved the transaction. The transaction is subject to certain conditions, including the receipt of required regulatory approvals, approval by the stockholders of both EBSB and Rockland and other customary conditions.