A deal between two Massachusetts banks is expected to close ahead of schedule after the selling bank's shareholders approved it Tuesday.
In April, Institution for Savings in Newburyport announced it would acquire Rockport National Bancorp for $28.3 million in cash, or 1.93 times Rockport's tangible book value.
At the time, the companies expected the deal to close in the fourth quarter. However, in a letter to shareholders on Wednesday, the $196 million-asset Rockport said it now expects the deal to close Aug. 29. Rockport's five branches are expected to be re-branded as branches of Institution for Savings on Sept. 1.
On Tuesday, Rockport shareholders approved the deal with 76.6% of the shares outstanding voting and 85% of those shareholders voting in favor. At least two-thirds of shareholders had to approve the deal.
The deal has already been approved by the Federal Deposit Insurance Corp., but it "requires the receipt of a few more regulatory approvals which we anticipate receiving within the next few weeks," Michael J. Jones, chief executive of Institution for Savings, said in the letter to Rockport shareholders.
The deal would combine two of the oldest financial institutions in the Bay State. Rockport, a commercial bank, was founded in 1865, while Institution for Savings, a mutual thrift, was founded in 1820, according to the Federal Deposit Insurance Corp.
Institution for Savings has $1.7 billion of assets and roughly a dozen branches in northeast Massachusetts.
The deal would be its second since 2007, when it acquired Ipswich Co-operative Bank.
The acquisition price works out to $138.58 per share, a roughly 127% premium to Rockport's trading price at the time the deal was announced.
As a condition of its acquisition, Institution for Savings has agreed to establish a $2 million charity to benefit not-for-profit organizations in the markets that Rockport currently serves.