July 31, 2021

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Mortgage News

Banks buy up rival community lenders

U.S. community banks have continued their M&A spree after Independent Bank Corp, parent company of Rockland Trust, announced that it had signed a merger agreement to acquire Meridian Bancorp, which owns East Boston Savings Bank.

Separately, Colony Bankcorp and SouthCrest Financial Group have agreed to merge to create Georgia’s largest community bank.

Rockland Trust will have assets of more than $ 20 billion with the acquisition of East Boston Savings Bank. The transaction is expected to close in the fourth quarter of 2021.

Following the completion of the merger of Colony Bankcorp, the holding company of Colony Bank, and SouthCrest Financial Group, the holding company of SouthCrest Bank, Colony has approximately $ 2.4 billion in assets and $ 1.4 billion in loans. And $ 2 billion in deposits.

Heath Fountain, president and chief executive of Colony, said the combined assets will make it the largest community bank and the fourth largest Georgia-based bank. The transaction is expected in the fourth quarter of this year at the latest.

Well added: “We believe there are significant opportunities for further growth as we expand the operational scope of our combined banks and bring additional resources into our new markets.”

Christopher Oddleifson, President and Chief Executive of Independent and Chief Executive of Rockland Trust, said the merger of Independent Bankcorp and Meridian Bancorp was “In line with its strategy of acquiring banks in overlapping and adjacent markets”.

“This transaction brings together two strong banks with a long and rich history that serve and invest in our local communities.” Richard J. Gavegnano, president and chief executive officer of East Boston Savings Bank, added.

MVB Bank has also decided to sell all of its community banking activities in Southwest Virginia to Summit Community Bank in order to focus on its core commercial markets in north-central West Virginia and Northern Virginia and to expand its fintech Focus industry.

The deal includes four full-service banking centers and two drive-up banking locations.