Banker & Tradesman file photo
Rockland Trust has announced that it plans to acquire Enterprise Bank in a cash and stock transaction valued at $562 million.
Combined merger-related charges are expected to be approximately $61.2 million before tax, in the aggregate, the bank said.
“Enterprise Bank is the perfect merger partner for Rockland Trust, consistent with all aspects of our outstanding long-term merger track record. Rockland Trust and Enterprise Bank share a deep commitment to strengthening our local communities by putting people and relationships first. Both institutions believe that banking is about making a meaningful, positive difference in the lives of local families and businesses,” Rockland Trust President and CEO Jeffrey Tengel said in a statement. “We look forward to extending Rockland Trust’s footprint in northern Massachusetts, as well as entering the New Hampshire market. Together, our combined institution will bring expanded convenience and additional products and services to the communities we are proud to serve.”
The merger is expected to close in the second half of 2025 subject to regulatory approvals and the approval of Enterprise shareholders.
Rockland Trust’s public holding company, Independent Bancorp, plans to issue 7.5 million shares of its common stock and paying $27.1 million to effectuate the deal. Additionally, as part of the transaction, Independent also plans to raise approximately $250 million in subordinated debt.
The merger will bring Rockland Trust back to near-parity with its chief local rival, Boston-based Eastern Bank.
As of Sept. 30, Enterprise Bank had $4.7 billion in total assets, $3.8 billion in net loans, $4.2 billion in deposits, and $1.5 billion in wealth assets under management and administration. After the acquisition, Rockland Trust will have approximately $25 billion in assets and $8.7 billion in wealth assets under administration plus $20 billion in deposits, according to the bank’s announcement.
Following its own merger with Cambridge Trust, concluded over the summer, Eastern has a total assets of $25.5 billion under its banking subsidiary and $8.4 billion in assets under management its Cambridge Trust-branded wealth management division. Total deposits sat at $21.22 billion as of Sept. 30.
Enterprise Bank board chair George Duncan will become an advisor to board of Independent Bancorp. and Steven Larochelle, CEO of Enterprise, will act as a consultant for Rockland Trust for one year. Additionally, Independent Bancorp. will appoint two Enterprise directors to its board following the merger.
“From the very start, Enterprise Bank has been dedicated to helping our communities succeed. That vision has inspired our long-standing commitment to our customers’ success, product innovation and community service,” Larochelle said in a statement. “We are excited to join an organization that lives these same values. Our customers will benefit from the additional products, services and technology Rockland Trust offers while continuing to experience the personal relationships they deserve.”
Enterprise was founded in 1989 in Lowell and has 27 full-service branches in Massachusetts and New Hampshire. Rockland said it does not plan to close any Enterprise Bank branches and intends to maintain a significant presence in Lowell. Rivals Eastern have eight branches in New Hampshire while Rockland Trust will also have eight in the state if the merger closes.
Rockland Trust’s last merger was in 2021 when it merged with East Boston Savings Bank. That all-stock deal was valued at $1.15 billion.
