Eastern Bankshares has agreed to acquire rival Boston-based bank holding company Century Bancorp in an all-cash deal worth $642 million.

While Eastern Bankshares is the holding company for Eastern Bank, Century Bancorp is the holding company for Century Bank and Trust Company.

The combination will create a $22 billion combined entity, which will strengthen tge position of the surviving Eastern Bankshares and Eastern Bank in Boston and Eastern Massachusetts.

The merger comes less than six months after Eastern Bankshares had raised nearly $1.7 billion in equity capital in an initial public offering.

Established in 1818, Eastern Bank has 110 plus locations for serving residents of eastern Massachusetts, Rhode Island, and southern and coastal New Hampshire.

As of 31 December 2020, Eastern Bank had nearly $16 billion in total assets.

Century Bank and Trust Company is a state chartered commercial bank with $6.4 billion in total assets under management. The bank operates 27 branches across the Greater Boston area.

Bob Rivers – CEO and Chair of the Board of Eastern Bankshares and Eastern Bank said: “We’ve admired Century’s success since its founding by Marshall Sloane in 1969 and today they are New England’s largest family-run bank. Under the leadership of Barry R. Sloane and Linda Sloane Kay, the Century Bank brand has continued to rise in prominence and it was a proud moment for us when they communicated they wanted to partner with Eastern.

“We are excited for the opportunities this agreement creates and believe our combination will deepen our reach in providing banking services and other support to communities across Greater Boston and southern New Hampshire.”

As per the terms of the deal, Century Bancorp shareholders will be paid $115.28 by Eastern Bankshares in cash for each share they hold in the company.

Barry R. Sloane – Chairman, President, and CEO of Century Bank said: “Our complementary business models and shared values make this partnership a natural fit.

“Both organizations are highly respected as leaders in the community, and we believe Eastern’s focus on innovation and technology will help to further ensure Century customers have greater access to banking products and services that meet their needs where and when they need them.”

The deal, which is subject to regulatory approvals, shareholder approval, and other customary conditions, is expected to be wrapped up in Q4 2021.

  Banking acquisition news, Banking industry news, Barry R. Sloane, Bob Rivers, Boston, Century Bancorp, Century Bank and Trust Company, Eastern Bank, Eastern Bankshares, Massachusetts, USA