Blue Hills Bank in Boston is buying a New England franchise from Sovereign Bank.
The $1.2 billion-asset Blue Hills said Monday it had agreed to buy Sovereign's Nantucket Bank division. Blue Hills would get three branches on the island of Nantucket along with $265 million in deposits and $100 million in loans. It did not say how much it would pay.
Blue Hills plans to keep Nantucket Bank's management team and brand after the merger closes, which is expected to happen early next year pending regulatory approval. Back-office functions are to be converted to Blue Hills' systems.
Blue Hills has six branches in Norfolk and Suffolk counties in Massachusetts.
"We're eager to offer an additional community bank alternative on Nantucket, along with sophisticated online and mobile technology," Blue Hills President and Chief Executive William Parent said in a press release. "We'll also be offering a full range of commercial, small business and residential mortgage products to serve Nantucket businesses and consumers."
Nantucket Bank is a 175 year-old banking operation, the oldest on Nantucket. Sovereign acquired it in 2004.
Sovereign Bank, a $79.9 billion-asset unit of Spain's Banco Santander, announced plans last month to change its name to Santander Bank.