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East Cambridge Savings Bank has agreed to acquire Woburn-based Patriot Community Bank in a deal expected to result in a combined bank with more than $1.5 billion in assets.
The banks said in a joint statement Wednesday that East Cambridge Savings Bank’s mutual holding company, 1854 Bancorp, would acquire Patriot Community Bank, an independent cooperative bank, for $15.75 in cash per share.
The banks said they expect to close the transaction in the third quarter. The merger is subject to regulatory approval, and Patriot Community Bank shareholders must also approve the deal.
Once the merger is complete, Patriot Community Bank’s Woburn office will become an East Cambridge Savings Bank branch, giving the bank 11 branches.
“We are pleased to announce this partnership. As local community banks, we are committed to serving communities that we have long been a part of,” East Cambridge Savings Bank President and CEO Gilda Nogueira said in the statement. “Through this merger, we look forward to providing expanded banking services and convenience to consumers and small businesses that have long looked to Patriot Community Bank for their banking needs. Our organizations, with similar corporate cultures and values, credit our long-term success to the confidence and trust of the many local residents and businesses we serve. We are committed to continuing as a strong financial and community partner.”
Patriot Community Bank was founded in 2006 by John O’Donnell, the bank’s president and CEO. The bank had $207.6 million in total assets as of Dec. 31.
O’Donnell will remain with East Cambridge Savings Bank as an executive vice president and senior commercial lending officer following the completion of the merger.
“We are excited to partner with East Cambridge Savings Bank and I am confident that this merger will continue Patriot Community Bank’s longstanding commitment to our customers, communities, and employees,” O’Donnell said in the statement. “East Cambridge Savings Bank has a 168-year history of working with customers and businesses to help them grow and thrive which is exactly what Patriot Community Bank has strived to do since our founding. This partnership brings together two community-focused local banks that are dedicated to helping our customers, supporting employees, and serving our communities.”
Goodwin Procter LLP served as legal counsel to East Cambridge Savings Bank, and The Kafafian Group Inc. was the financial advisor. Griffin Financial Group LLC served as financial advisor and provided a fairness opinion to Patriot Community Bank, while K&L Gates LLP provided legal counsel to Patriot Community Bank.
The $1.3 billion-asset East Cambridge Savings Bank is a mutual bank with branches in Cambridge, Arlington, Belmont, Chelsea, Malden, Medford, Somerville and Waltham.
While Greater Boston in 2021 saw its larger publicly traded banks active with merger and acquisitions, this will be the first merger involving a Massachusetts-based mutual bank since 2020.
