Eastern Bank Acquires Century Bank for $642 Million
In its largest deal yet and first purchase since becoming a public company less than six months ago, NEC member Eastern Bank is expected to acquire Century Bank for $642 million by the fourth quarter of 2021. The acquisition would merge two of Boston’s largest community banks, creating a $22 billion combined franchise and cementing Eastern’s leading position as the third-largest traditional retail bank in New England, and biggest local bank in Massachusetts.
Under the terms of the agreement, Century shareholders would receive a 26% premium with $115.28 in cash for every owned share of Century Bancorp’s stock. Century customers would be converted to the Eastern platform with its branches assuming Eastern’s name. Eastern Bank will fund the purchase price with cash from its balance sheet, powered by $1.7 billion from its initial public offering in 2020.
“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,” said Bob Rivers, Chief Executive Officer and Chair of the Board of Eastern Bankshares, Inc. and Eastern Bank.
The New England Council congratulates Eastern Bank on this acquisition and looks forward to the bank’s continued growth in New England. Read more from Eastern’s press release and the Boston Globe.