Independent Bank, parent of Rockland Trust Company, has agreed to purchase Meridian Bancorp in a deal worth around $1.15bn.

Transaction details

The agreement will also see Rockland Trust acquiring East Boston Savings Bank, a Meridian subsidiary, upon completion in the fourth quarter of this year.

Each Meridian stockholder will be entitled to get 0.2750 of a share of Independent common stock for each share held. The transaction prices Meridian at 150% of its tangible book value.

The deal would help Rockland Trust top $20bn in assets and strengthen its position as the Boston Area’s premier community-focused commercial bank.

Currently, the deal awaits the clearance of shareholders and regulators. It has already secured the go-ahead from the two companies’ boards of directors.

Independent president and CEO and Rockland Trust CEO Christopher Oddleifson said: “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.”

Oddleifson said that the deal aligns with its plan to buy banks in overlapping and adjacent markets sharing its “relationship-focused” banking style.

Peabody, Massachusetts-based Meridian had $6.5bn in assets, $5.3bn in loans, and $5.1bn in deposits at the end of March this year.

Its subsidiary East Boston Savings Bank has 43 branches in the greater Boston metropolitan area, including 42 full-service locations as well as one mobile branch.

Rockland, Massachusetts-based Independent had $13.8bn in assets as of 31 March 2021.

M&A activities in the US community banking space have been rampant since the beginning of this year.

The latest deal comes close on the heels of Bank of Marin’s agreement to acquire American River Bank for $134m.

Earlier this month, SmartFinancial, the parent of SmartBank, agreed to buy Sevier County Bancshares (SCB) in a deal valued at nearly $38.2m.

Also this month, Eastern Bankshares signed a definitive agreement to acquire Century Bancorp in an all-cash transaction worth $642m.