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Despite uncertainty related to the pandemic, Rockland Trust’s CEO said the bank would consider making an acquisition, including a large one, in the current environment.
CEO Christopher Oddleifson said during Rockland Trust’s third quarter earnings conference call that the bank would like to continue making acquisitions, as it has done every two to three years in the past. The bank’s most recently acquired Blue Hills Bank in April 2019.
“We would definitely engage right now, though I think it’s sort of situational,” Oddleifson said in response to an analyst’s question about pursuing an acquisition during the pandemic. “There is a lot of uncertainty. We have a lot going on right now, so I think we’d have to be thoughtful about it.”
But Oddleifson added that Rockland Trust would be unwilling to pass on a potential opportunity it liked and let another bank make the acquisition. He added that the bank would also consider acquiring a larger bank.
“In an acquisition of banks of equal size, one needs to be the acquirer and be the lead,” Oddleifson said. “But I think that would be something we’d consider too.”
The bank also plans to remain committed to its branch network, including its expansion into Worcester. Rockland Trust opened its first Worcester area branch this year and plans to open another one in Worcester in the fourth quarter, one in Shrewsbury early next year and possibly at least one more in 2021 along the Route 9 corridor.
In response to an analyst’s question noting that the value Rockland Trust places in its branches differs from the strategy of some other banks, Oddleifson said some customers continue to want a local banking presence.
“Our core deposit franchise has been one of our incredible strengths over time, and that we believe is completely attributable to our community-based, relationship-based branch network,” Oddleifson said. “The extent that in the short- to medium-run – I think in the long-run, like 15, 20, 25 years, maybe this is going to change – but there is going to be a segment of the population who either desire to work with a branch actually face-to face or will open an account with a franchise that has a physical presence just in case they need it.”
Rockland Trust’s chief financial officer, Mark Ruggiero, said the bank would have opportunities to become more efficient in our branches through technology both inside and outside of the branch.
“Our objective is to continue to move transactions – non-value-added transactions – to our digital channels, so that we can enhance the conversations that we’re having with customers when they are in front of us.”
Rockland Trust had third quarter net income of $34.9 million, or $1.06 per diluted share, compared to net income of $24.9 million, or $0.76 per diluted share, in the second quarter of 2020 and $51.8 million, or $1.51 per diluted share, in the third quarter of 2019.
Rockland Trust’s total assets of $13.2 billion at Sept. 30 increased by $151.2 million, or 1.2 percent, from the prior quarter, and was up $1.6 billion, or 14.2%, year-over-year.
