Banker & Tradesman file photo
Eastern Bank’s pending merger with Cambridge Trust has taken another step closer to completion with the recent appointment of four Cambridge Trust directors to Eastern’s board.
The four Cambridge Trust directors will be joining the Eastern board upon the closing of the merger, expected around July 12.
Denis Sheahan, chairman, president and CEO of Cambridge, will become the CEO of Eastern and will join the Eastern boards of directors. Eastern CEO and board chair Bob Rivers will remain as leader of the Eastern board with the new title of “executive chair.” Eastern Vice Chair and President Quincy Miller will continue in that role while taking on additional responsibilities as chief operating officer.
The newly appointed Cambridge directors are industry leaders with extensive experience in banking and professional services, real estate, risk management and corporate governance, Eastern said.
“We are pleased to announce the appointment of Denis Sheahan, Leon Palandjian, Cathy Schmidt, and Andy Zelleke to Eastern’s Boards of Directors, and look forward to benefiting from their guidance and insights,” Rivers said in a statement. “They are thoughtful and highly respected leaders who understand our commitment to serving our shareholders, customers, colleagues and local communities. Their expertise will help drive greater value and innovation as our two organizations come together to create Greater Boston’s leading local bank and the largest bank-owned independent investment advisor in Massachusetts.”
Leon Palandjian is the chief risk officer of Intercontinental Real Estate Corp., a national real estate investment, development and management firm headquartered in Boston.
Cathleen Schmidt was most recently served CEO at McLane Middleton, the largest full-service business law firm headquartered in Manchester, New Hampshire.
Andy Zelleke has three decades of experience in corporate governance, leadership and management, negotiation and law, and is currently the MBA Class of 1962 senior lecturer in business administration at Harvard Business School.
Eastern Bank first announced its plans to buy Cambridge Trust and sell its insurance division on Sept. 19 according to documents filed with the Securities and Exchange Commission.
The merger was delayed for a full quarter thanks to a slower-than-normal review by banking regulators.
Eastern Bank expects a net interest margin of over 3 percent post-merger, compared to the 2.68 percent Eastern reported for the first quarter of this year, and earnings-per-share and cost savings greater than original estimates. The two banks’ combined wealth management operations are expected to earn around $60 million per year with an efficiency ratio in the “low 50 percent range,” according to CFO Jim Fitzgerald during Eastern’s earnings call on April 26.
