Needham Bank's Ashland branch in 2019. Courtesy photo/ File

Needham Bank has acquired the cannabis banking and money service businesses that Eastern Bank inherited from its November merger with Century Bank.

The banks had announced in January that they had agreed to transfer the cannabis business. As part of the transaction, Needham Bank has hired the cannabis banking team involved with the business, Needham Bank said in a statement today, including executive vice president Paul Evangelista, who launched and led the cannabis banking strategy at Century Bank for the past nine years.

The $2.9 billion-asset Needham Bank said it is subletting Eastern’s Medford branch at 400 Mystic Ave. so customers can continue to bank there.

“We’ve spent the last couple of years analyzing the cannabis industry and the significant compliance and regulatory resources necessary to be successful,” Joseph Campanelli, Needham Bank’s president and CEO, said in the statement. “We’ve made a number of investments in our infrastructure and believe the addition of Paul and his team has made the transition as seamless as possible for this customer segment. This is an exciting opportunity for us and we look forward to building relationships with our new customers and continuing to serve our communities.”

Bob Rivers, Eastern Bank’s CEO and board chair, said when the deal was announced in January that the special handling required to meet the banking needs of cannabis-related businesses did not align well with Eastern’s approach to serving business customers.

“It was a pleasure working with Needham Bank to finalize this transaction,” Rivers said in today’s statement. “The cannabis banking customers are in good hands thanks to Needham Bank’s suite of products and cash management services, and I look forward to seeing these businesses thrive with their thoughtful approach to banking this specialized industry.”

Needham received the necessary regulatory approvals for the deal in March. The portfolio includes about $500 million in deposits.