SalemNews.com, Salem, MA

Business

April 23, 2014

Institution for Savings to acquire Rockport bank

Institution for Savings is poised to acquire Rockport National Bancorp, the parent company of the Rockport National Bank.

The agreement would create a single institution with 11 branches stretching from Salisbury to Beverly, with assets totaling $1.6 billion.

Institution for Savings is headquartered in Newburyport and has branches in Ipswich, Topsfield, Rowley and Salisbury. Rockport National Bank, founded in Rockport in 1851, has branches in Beverly and Gloucester.

The deal, according to an announcement from Institution for Savings, is an all-cash transaction valued at approximately $28.3 million. It is expected to be finalized by the end of the year.

Under the agreement, shareholders of Rockport National Bancorp will receive $138 in cash in exchange for each share of Rockport common stock. That’s a premium of 127 percent over the recent closing price of $60.95 per share, roughly 193 percent of Rockport’s tangible book value as of Dec. 31, 2013, and approximately 29 times Rockport’s earnings for 2013, according to a statement from Institution for Savings..

“We are committed to remaining a mutually owned regional savings bank, and Cape Ann and Beverly are a natural extension to our existing banking office,” said Michael Jones, president and CEO of Institution for Savings, in a prepared statement.

The Institution for Savings has 130 full-time employees and $1.1 billion in loans, while Rockport has 46 full-time employees and loans totaling $145 million. No branches are expected to close as a result of the acquisition.

The Institution for Savings will fund a charitable foundation in the amount of $2 million for the benefit of not-for-profit organizations in the Cape Ann community.

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