Rockland Trust parent firm Independent Bank Corp has entered into a merger agreement with Blue Hills Bank parent firm Blue Hills Bancorp.
Image: Independent Bank has entered into merger agreement with Blue Hills Bancorp. Photo: courtesy of rawpixel / Unsplash.
Under the deal, Independent will acquire Blue Hills Bancorp and Rockland Trust will acquire Blue Hills Bank.
As per terms of the deal, each Blue Hills Bancorp stockholder will secure 0.2308 of a share of Independent common stock and $5.25 in cash for each share of Blue Hills Bancorp common stock.
Based upon Independent’s $89.35 per share closing price on 19 September 2018, the transaction is valued at about $726.5m and the aggregate consideration represents 178% of Blue Hills Bancorp’s current tangible book value.
Blue Hills Bank president and CEO William Parent said: “We are pleased to join Rockland Trust, a best in class partner that will benefit our customers, employees and the communities we serve while also providing an attractive return to our shareholders.”
In 1871, Blue Hills Bank was established as Hyde Park Savings Bank. At present, Blue Hills Bank manages 11 branches in Boston, Dedham, Hyde Park, Milton, Norwood, West Roxbury, and Westwood.
The bank also has three locations on Nantucket Island, which are operated under the name Nantucket Bank.
Blue Hills Bank offers consumer, commercial and municipal deposit and loan products in eastern Massachusetts via its branch network, loan production offices and ecommerce channels.
Blue Hills Bancorp had $2.7bn in total assets, $2.3bn in loans and $2.1bn in deposits, as of 30 June.
Rockland Trust will hold $1bn in assets, after the Blue Hills Bank merger and the closing of Rockland Trust’s earlier announced acquisition of The Milford National Bank & Trust.
Rockland Trust provides services to businesses and individuals through around 100 retail branches, commercial and residential lending centers, and investment management offices in eastern Massachusetts. It also provides a full suite of mobile, online, and telephone banking services.
The deal is expected to complete in the first of 2019.
Independent CEO and president Christopher Oddleifson said: “Our transaction with Blue Hills Bank is a natural fit and is consistent with our strategy of acquiring banks in overlapping and adjacent markets.
“Blue Hills Bank is a strong, well run, growing company with a tremendous franchise. This acquisition will strengthen the position of Rockland Trust in Eastern Massachusetts and also permit us to expand onto Nantucket Island.”