The Community Bank recently announced a merger that gives Eastern Bank an additional 99 branches and 128 ATM machines around eastern Massachusetts and Cape Cod and converts more than 16,000 customers. Eastern Bank promises customers new advantages from the business formation, including online banking and mobile deposits. State and federal regulators approved the merger, and no premiums were paid as Eastern is a mutual company and Community is a cooperative bank.
Eastern Bank is a mutually owned bank that was formed in 1818 and is one of the most stable banks in New England. The merger with The Community Bank, based in Brockton, was advantageous for both partners. Eastern has previously merged with Sharon Cooperative Bank in 2007, a company that evolved from Plymouth Savings Bank in 2005. In all, Eastern has merged five times in its history.
Mergers and consolidations are often beneficial to both parties because smaller companies can combine their earning and buying power into a larger and more profitable venture. In the case of banks, mergers often make the two companies stronger and more solvent, and they enable the new creation to offer better service and new technology to customers.
It is often wise for companies that are considering a merger with another business to consult a business attorney for advice. Business lawyers understand both the advantages and pitfalls of potential combinations of companies and can guide their clients through the multitude of legal roadblocks that can exist in these situations. By seeking sound legal advice, businesses are better able to make sound decisions about the viability of a merger and protect their interests during these transactions.
Source: Wicked Local Newton, “Eastern Bank completes merger with The Community Bank,” Chloe Gotsis, Dec. 3, 2012