A newly formed commercial banking firm lead by former Boston Private CEO announced today that it will buy Admirals Bank in a deal expected to close early next year.
Mark D. Thompson, formerly of Boston Private and now of First Boston Holdings, will head up the new bank, which will be named Bank & Trust Co. of Boston. The bank plans to raise $100 million, led by Piper Jaffray, the lead placement agent and the financial advisor on the acquisition. The company did not disclose any financial details of the transaction.
In a statement, the company said that Bank & Trust Co. will offer full banking services with an emphasis on individuals and families, the not-for-profit sector, small and medium sized businesses and professional service firms.
“Boston is changing, with a fresh influx of young people who are creating wealth and need a financial institution to help them grow and preserve their wealth,” Thompson said in a statement. “Boston is a growing, innovative economy that needs a new bank to help provide capital to individuals, families and our business community. Bank & Trust Co. of Boston will be a true 21st century bank for these client relationships.”
Also joining Thompson at Bank & Trust Co. will be John J. Sullivan, a former executive vice president at Boston Private, William J. Shea, the former vice chairman and CFO at Bank of Boston and current board chairman of Demoulas Supermarkets. Sullivan will become executive vice president and chief banking officer, and Shea will become chair of the new bank’s board. Rocco J. Maggiotto, former global leader of PricewaterhouseCoopers’ Financial Services Practice, and Anthony A. Nickas, a cofounder and managing partner of First Atlantic Capital, will also join the board.
Bank & Trust Co. will maintain the two locations Admirals Bank already has, in Back Bay and Providence, and plans to expand into the Seaport District after the deal is complete.
As of June 30, Admirals Bank had $445.6 million in assets, loans and leases totaling $336.9 million and deposits totaling $369.3 million, according to information available on the FDIC’s website. According to the FDIC, Admirals posted a net loss of about $1.7 million at June 30 and it posted a return on assets of negative 0.80 percent.
The deal is expected to close in the first quarter of 2017. Piper Jaffray & Co., the lead placement agent, served as financial advisor to Bank & Trust Co. of Boston. Admirals’ financial advisor in the transaction was Sandler O’Neill & Partners, L.P., which will also act as a placement agent for the financing. First Boston is represented in the transaction by Seyfarth Shaw LLP. Admirals was represented by Debevoise & Plimpton LLP.
