Dedham, Mass.-based 1831 Bancorp MHC, the mutual holding company of Dedham Institution for Savings, and South Weymouth, Mass.-based South Shore Bancorp MHC, the mutual holding company of South Shore Bank, will merge under the 1831 Bancorp MHC name.
Dedham Institution for Savings and South Shore Bank will remain independent as two institutions operating under the parent company 1831 Bancorp MHC.
As of Dec. 31, 2022, the combined mutual holding company will have assets of more than $4 billion. It will continue to provide traditional and digital banking products and services to consumers, small business and commercial customers.
Peter Brown will remain CEO and president of Dedham Institution for Savings. With regulatory approval expected later in 2023, Brown will become chairman and CEO of the combined mutual holding company.
Jim Dunphy will continue as CEO of South Shore Bank and become president of the combined company. Upon Brown's planned retirement in three years, Dunphy will take over as CEO of the combined company.
S&P Global Market Intelligence valuations for bank and thrift targets in the Northeast region between March 14, 2022, and March 14, 2023, averaged 142.32% of book and 149.32% of tangible book and had a median of 15.44x last-12-months earnings, on an aggregate basis.
The agreement is awaiting regulatory and corporator approvals, according to a news release.
With the completion of the deal, the combined company will operate 20 branches in Norfolk County, Mass., to be ranked third with an 8.39% share of about $38.14 billion in total market deposits. It will also operate four branches in Plymouth County, Mass., to be ranked No. 12 with a 1.54% share of roughly $18.86 billion in total market deposits and one branch in Middlesex County, Mass., to be ranked No. 47 with a 0.01% share of approximately $83.74 billion in total market deposits, according to Market Intelligence data.
Keefe Bruyette & Woods was the financial adviser. Luse Gorman was the legal counsel to 1831 Bancorp, and Updike Kelly & Spellacy PC was the legal counsel to South Shore Bancorp.
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