Independent, Island enter into merger agreement

EDGARTOWN, Mass. – Independent Bank Corp., parent of Rockland Trust Corp., has signed a merger agreement with Island Bancorp Inc., parent of the Edgartown National Bank in Edgartown, a community of Martha’s Vineyard, Mass.
Under the agreement, Independent Bank, with $7.5 billion in assets, will exchange 9.52 shares – or $500 cash – for each Island Bancorp share. Independent expects to issue about 369,311 shares of its common stock in the merger, meaning the transaction is valued at about $24.5 million. That’s about 151.8 percent of Island Bancorp’s tangible book value reported in the quarter ending Sept. 30.
One-time expenses related to the merger will total about $2.4 million after tax, and will be reflected in 2016 and 2017 financial statements. Edgartown, chartered in 1905, reports about $171 million in deposits and about $153 million in loans.
“Rockland Trust already has many customer relationships with close ties to Martha’s Vineyard, so we welcome the opportunity to expand our Martha’s Vineyard physical presence by joining Edgartown National with Rockland Trust,” said Christopher Oddleifson, president and CEO of Independent and Rockland Trust. “It is a natural expansion and strengthening of our Cape Cod franchise. Edgartown National and Rockland Trust share the same values, and are committed to the communities they serve and the families that live in them. We look forward to welcoming Edgartown National colleagues and customers to Rockland Trust.”