New England Bancorp has $260m in assets. Independent Bank Corp. is the parent of Rockland Trust Company, which is acquiring Bank of Cape Cod.
Established in 2006, Bank of Cape Cod currently has four branches in the Massachusetts communities of Hyannis, Falmouth and Osterville.
The bank has about $214m in deposits, and around $229m in loans.
Independent anticipates that the acquisition will be approximately $0.05 accretive to its 2017 operating earnings, primarily driven by consolidation efficiencies.
The transaction is expected to generate an internal rate of return of around 20% and be neutral to tangible book value per share.
One time expenses attributable to the merger are anticipated to be about $3m after tax in 2016.
The transaction, which is subject to regulatory approvals, is expected to be closed in the fourth quarter of this year.
Bank of Cape Cod CEO Timothy Telman said: "This transaction is in the best interests of our shareholders and will be good for our customers, who will enjoy the greater range of products and services that Rockland Trust offers and the convenience of Rockland Trust locations across Eastern Massachusetts."
Independent Bank Corp. has $7.2bn in assets. Rockland Trust provides a range of commercial banking and retail banking products and services, business and consumer loans, as well as investment management services.
Image: Independent Bank Corp. has agreed to acquire New England Bancorp. Photo: courtesy of stockimages/FreeDigitalPhotos.net.
