Deal Worth $122 Million
May 19, 2020
Cambridge Bancorp as of May 15 has received all regulatory approvals relating to the proposed merger with Wellesley Bancorp, Inc. The shareholders of Cambridge Bancorp and Wellesley Bancorp, Inc. approved the transaction at special meetings held in March. The anticipated closing date of the merger is on June 1, subject to closing conditions.
Cambridge Bancorp, the holding company for Cambridge Trust Company, and Wellesley Massachusetts-based Wellesley Bancorp, Inc., the holding company for Wellesley Bank, entered into the agreement back in December. It will have Wellesley merge with and into Cambridge in an all-stock transaction valued at approximately $122 million.
According to an announcement from the banks, as of Sept. 30, 2019 Wellesley had approximately $986 million of total assets, $833 million of gross loans, $759 million of deposits, and $363 million of wealth management assets. Based on financial metrics as of September 30, 2019, the combined company is expected to have over $3.8 billion in assets, $3.0 billion in gross loans, $3.2 billion in deposits, and $3.6 billion of wealth management assets upon completion of the transaction.
On a pro forma basis the transaction is expected to be approximately 4.4 percent accretive to Cambridge’s 2021 earnings per share and approximately 1.6 percent dilutive to tangible book value per share with an expected earnback period of approximately 2.2 years.
Upon closing, three Wellesley directors will join the Cambridge board of directors, including Thomas J. Fontaine, president and CEO of Wellesley Bank.
This merger, according to a bank news release, is expected to enhance and expand Cambridge’s Greater Boston presence with the addition of Wellesley’s six full service banking offices in Norfolk, Middlesex, and Suffolk counties. Cambridge and Wellesley share similar service-oriented business models and each provide their clients with banking and wealth management services. Fontaine will serve in the role of chief banking officer.