Independent Bank Corp. (NASDAQ: INDB), parent of Rockland Trust
Company, and Mayflower Bancorp, Inc. (NASDAQ: MFLR), parent of
Mayflower Bank, have signed a definitive agreement for Independent
to acquire Mayflower and Rockland Trust to acquire Mayflower
Bank.
Mayflower Bank was founded in 1889 and currently has 8 Plymouth
County bank branches, approximately $236 million in deposits, and
approximately $141 million in loans.
“We are pleased to welcome Mayflower Bank customers and
colleagues to Rockland Trust,” said Christopher Oddleifson, the
Chief Executive Officer of Independent. “Mayflower Bank is a
profitable, well-managed institution with an excellent deposit base
and strong credit quality. This acquisition will further strengthen
Rockland Trust’s position in the attractive Plymouth County
area.”
“This transaction is good for our customers and is in the best
interests of our shareholders,” said Edward M. Pratt, the Chief
Executive Officer of Mayflower. “We are pleased to join Rockland
Trust, a growing company with a terrific brand in our region. Our
customers will benefit from the greater range of products and
services that Rockland Trust offers and the convenience of Rockland
Trust locations across Eastern Massachusetts.”
The agreement provides that 70% of outstanding Mayflower shares
will be exchanged for Independent shares at a fixed exchange ratio
of .565 of an Independent share for each Mayflower share.
Independent will purchase the remaining 30% of outstanding
Mayflower shares for $17.50 per share in cash. Based upon
Independent’s $32.03 per share closing price on May 13, 2013 the
transaction is valued at approximately $37.2 million. The
transaction is intended to qualify as a tax-free reorganization for
federal income tax purposes and to provide a tax-free exchange for
Mayflower shareholders who receive Independent shares. Mayflower
shareholders will be able to elect between receiving cash or
Independent shares, subject to proration and allocation so that 70%
of outstanding Mayflower shares are exchanged for Independent stock
and 30% exchanged for cash.
See map depicting the current bank branch locations of Rockland
Trust and Mayflower Bank.
Independent anticipates that the Mayflower acquisition will be
approximately 1.5% accretive to 2014 earnings, exclusive of
one-time charges, primarily driven by consolidation efficiencies
and approximately 2% accretive annually thereafter. Independent
believes that the transaction will generate an internal rate of
return of approximately 15%, and estimates tangible book dilution
of approximately 2% that will be recaptured in about 3 months with
a “crossover” of approximately 5 years.
The transaction has been approved by the boards of directors of
each company and is subject to certain conditions, including the
receipt of required regulatory approvals, approval by Mayflower
shareholders, and other standard conditions. The parties anticipate
that the closing of the transaction will likely occur in the fourth
quarter of 2013.
Independent was advised by Keefe, Bruyette & Woods and used
Choate Hall & Stewart LLP as its legal counsel. Mayflower was
advised by Sterne, Agee & Leach, Inc. and used Kilpatrick
Townsend & Stockton LLP as its legal counsel.
About Independent Bank Corp.
Independent Bank Corp., which has Rockland Trust Company as its
wholly-owned commercial bank subsidiary, has $5.7 billion in
assets. Rockland Trust offers a wide range of commercial banking
products and services, retail banking products and services,
business and consumer loans, insurance products and services, and
investment management services. To find out why Rockland Trust is
the bank “Where Each Relationship Matters®”, visit
www.RocklandTrust.com.
About Mayflower Bancorp., Inc.
Mayflower Bancorp, Inc. has $261 million in assets and is the
holding company for Mayflower Bank, which was founded in 1889 as a
Massachusetts chartered co-operative bank. Mayflower Bank is a
full-service community bank that offers a variety of deposit
products and makes mortgage loans for the construction, purchase,
and refinancing of residential and commercial real estate as well
as other commercial and consumer loans of various types. Mayflower
Bank operates eight full-service offices in the Massachusetts
communities of Bridgewater, Lakeville, Middleboro, Plymouth,
Rochester, Wareham, and West Wareham.
Forward Looking Statements:
Certain statements contained in this filing that are not
statements of historical fact constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 (the “Act”), notwithstanding that such statements are not
specifically identified. In addition, certain statements may be
contained in the future filings of Independent and Mayflower with
the Securities Exchange Commission, in press releases and in oral
and written statements made by or with the approval of Independent
and Mayflower that are not statements of historical fact and
constitute forward-looking statements within the meaning of the
Act. Examples of forward-looking statements include, but are not
limited to: (i) statements about the benefits of the merger,
including future financial and operating results, cost savings,
enhanced revenues and accretion to reported earnings that may be
realized from the merger; (ii) statements of plans, objectives
and management expectations; (iii) statements of future
economic performance; and (iv) statements of assumptions underlying
such statements. Words such as “believes,” “anticipates,”
“expects,” “intends,” “targeted,” “continue,” “remain,” “will,”
“should,” “may” and other similar expressions are intended to
identify forward-looking statements but are not the exclusive means
of identifying such statements.
Forward-looking statements are not guarantees of future
performance and involve certain risks, uncertainties, and
assumptions that are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed
or forecasted in such forward-looking statements. Factors that
could cause actual results to differ include, but are not limited
to: (i) the risk that the businesses involved in the merger
will not be integrated successfully or such integration may be more
difficult, time-consuming, or costly than expected;
(ii) expected revenue synergies and cost savings from the
merger may not be fully realized or realized within the expected
time frame; (iii) revenues following the merger may be lower
than expected; (iv) deposit attrition, operating costs,
customer loss, and business disruption following the merger,
including, without limitation, difficulties in maintaining
relationships with employees, may be greater than expected;
(v) the ability to obtain governmental approvals of the merger
on the proposed terms and schedule; (vi) local, regional, national
and international economic conditions and the impact they may have
on the parties to the merger and their customers;
(vii) changes in interest rates, spreads on earning assets and
interest-bearing liabilities, and interest rate sensitivity;
(viii) prepayment speeds, loan originations and credit losses;
(ix) sources of liquidity; (x) shares of common stock
outstanding and common stock price volatility; (xi) fair value
of and number of stock-based compensation awards to be issued in
future periods; (xii) legislation affecting the financial
services industry as a whole, and/or the parties and their
subsidiaries individually or collectively; (xiii) regulatory
supervision and oversight, including required capital levels;
(xiv) increasing price and product/service competition by
competitors, including new entrants; (xv) rapid technological
developments and changes; (xvi) the parties’ ability to
continue to introduce competitive new products and services on a
timely, cost-effective basis; (xvii) the mix of
products/services; (xiii) containing costs and expenses;
(xix) governmental and public policy changes;
(xx) protection and validity of intellectual property rights;
(xxi) reliance on large customers; (xxii) technological,
implementation and cost/financial risks in large, multi-year
contracts; (xxiii) the outcome of pending and future
litigation and governmental proceedings; (xxiv) continued
availability of financing; (xxv) financial resources in the
amounts, at the times and on the terms required to support the
parties’ future businesses; and (xxvi) material differences in
the actual financial results of merger and acquisition activities
compared with expectations, including the full realization of
anticipated cost savings and revenue enhancements. Additional
factors that could cause Independent’s and Mayflower's results to
differ materially from those described in the forward-looking
statements can be found in Independent’s and Mayflower's Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current
Reports on Form 8-K filed with the SEC. All subsequent written and
oral forward-looking statements concerning the proposed transaction
or other matters and attributable to the parties or any person
acting on their behalf are expressly qualified in their entirety by
the cautionary statements referenced above. Forward-looking
statements speak only as of the date on which such statements are
made. The parties undertake no obligation to update any
forward-looking statement to reflect events or circumstances after
the date on which such statement is made, or to reflect the
occurrence of unanticipated events.
Additional Information:
In connection with the Merger, Independent will file with the
SEC a Registration Statement on Form S-4 that will include a Proxy
Statement of Mayflower Bancorp, Inc. and a Prospectus of
Independent, as well as other relevant documents concerning the
proposed transaction. Shareholders are urged to read the
Registration Statement and the Proxy Statement/Prospectus regarding
the Merger when it becomes available and any other relevant
documents filed with the SEC, as well as any amendments or
supplements to those documents, because they will contain important
information. You will be able to obtain a free copy of the Proxy
Statement/Prospectus, as well as other filings containing
information about Independent and Mayflower, at the SEC’s Internet
site (http://www.sec.gov). You will also be able to obtain these
documents for Independent, free of charge, at www.RocklandTrust.com
under the tab “Investor Relations” and then under the heading “SEC
Filings.” Copies of the Proxy Statement/Prospectus and the SEC
filings that will be incorporated by reference in the Proxy
Statement/Prospectus can also be obtained, free of charge, by
directing a request to Investor Relations, Independent Bank Corp.,
288 Union Street, Rockland, Massachusetts 02370, (781)
982-6858.
Mayflower and its directors and executive officers may be deemed
to be participants in the solicitation of proxies from Mayflower
shareholders in connection with the Merger and the transactions
contemplated thereby. Information about Mayflower’s directors and
executive officers is set forth in the proxy statement for its 2012
annual meeting of shareholders, as filed with the SEC on a Schedule
14A on June 20, 2012. Additional information regarding the
interests of those participants and other persons who may be deemed
participants in the transaction may be obtained by reading the
Proxy Statement/Prospectus regarding the Merger when it becomes
available. You may obtain free copies of this document as described
in the preceding paragraph.
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