Independent Bank, parent of Rockland Trust Company, and MNB Bancorp, parent of The Milford National Bank and Trust Company (Milford National), have signed a definitive merger agreement.
Pursuant to the terms of the agreement, Independent Bank will acquire MNB Bancorp while Rockland Trust will acquire Milford National Bank and Trust Company.
Milford National had $301m in deposits and $308m in loans as of 31 March 2018. Milford National’s wealth management business, which is also part of the deal, had $167m of assets under administration.
Each share of MNB stock will be swapped for either 3.55 shares of Independent common stock or $275 in cash, subject to customary pro-ration procedures.
Based on Independent’s $76.80 per share closing price on 25 May 2018, the transaction is valued at about $54.2m.
Independent Bank and Rockland Trust CEO Christopher Oddleifson said: “Rockland Trust already has a Milford presence with many customer relationships in Milford and the surrounding area. We welcome the opportunity to further broaden our Worcester County presence by joining Milford National with Rockland Trust.
“This acquisition is a natural expansion and strengthening of our existing presence in Milford and Worcester County. We look forward to welcoming Milford National colleagues and customers to Rockland Trust.”
Independent believes that the acquisition will be almost $0.10 accretive to its 2019 earnings, excluding one-time costs.
Subject to required regulatory approvals, nod by MNB shareholders, and other standard conditions, the transaction is expected to conclude during the fourth quarter of 2018.