Independent Bank in Rockland, Mass., has agreed to buy Island Bancorp in Edgartown, Mass.
The $7.5 billion-asset Independent said in a press release Thursday that it will pay $24.5 million in cash and stock for the $194 million-asset parent of Edgartown National Bank. The deal, which is expected to close in the second quarter, values Island Bancorp at 151.8% of its tangible book value.
Edgartown National, founded in 1905, has $171 million in deposits and $153 million in loans across several Martha's Vineyard communities.
The deal "is a natural expansion and strengthening of our Cape Cod franchise," Christopher Oddleifson, Independent's president and chief executive, said in the release.
Independent said it expects the acquisition to be slightly accretive to its 2018 earnings. The company expects to incur about $2.4 million in merger-related expenses.
Independent was advised by Day Pitney; Sandler O'Neill delivered a fairness opinion. Island Bancorp was advised by FIG Partners and Cranmore, FitzGerald & Meaney.