Rockland Trust Acquiring Milford National Bank For $52.2 Million

MILFORD, MA—Rockland Trust is acquiring Milford National Bank and Trust Co. in a $54.2 million deal, the companies announced this week.

Independent Bank Corp., the parent of Rockland Trust, is acquiring MNB Bancorp., the parent of Milford National, according to the release, and the deal is expected to close some time in the fourth quarter.

Milford National was founded in 1849, and currently has three Worcester County bank branches—two in Milford and one in Mendon.

As of March 31, 2018, Milford National had $301 million in deposits, with a current overall cost of deposits of 0.40 percent, and $308 million in loans with a current yield of 4.71 percent, said the announcement. Milford National’s wealth management business, which is also being acquired by Rockland Trust, had $167 million of assets under administration.

“Rockland Trust already has a Milford presence with many customer relationships in Milford and the surrounding area," said said Christopher Oddleifson, president and chief executive officer of Independent and the chief executive officer of Rockland Trust, in a statement. "We welcome the opportunity to further broaden our Worcester County presence by joining Milford National with Rockland Trust. This acquisition is a natural expansion and strengthening of our existing presence in Milford and Worcester County. We look forward to welcoming Milford National colleagues and customers to Rockland Trust.”

“We are extremely pleased to join Rockland Trust, a growing bank with a terrific brand,” said Kevin Meehan, chairman of the board of Milford National, in a statement. “Our customers will enjoy the greater range of products, services and convenience that Rockland Trust offers.”

Under the merger agreement each share of MNB stock will be exchanged for either 3.55 shares of Independent common stock or $275 in cash, subject to customary pro-ration procedures which will result in an aggregate stock/cash consideration mix of 75 percent stock/25 percent cash.

Independent anticipates issuing approximately 528,375 shares of its common stock in the merger. Based upon Independent's $76.80 per share closing price on May 25, 2018, the transaction is valued at approximately $54.2 million. Independent intends to fund the cash portion of the consideration from internal sources.

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