Eastern Bankshares, Inc. ("Eastern") and Needham Bank Enter Into Asset Purchase Agreement For The Transfer of Eastern's Cannabis Banking Business
Eastern Bankshares, Inc. ("Eastern") (Nasdaq Global Select Market: EBC), the stock holding company for Eastern Bank, and Needham Bank ("Needham") today jointly announced they have entered into an asset purchase agreement for the transfer to Needham of Eastern's cannabis-related and money service business deposit relationships which were acquired during its merger with Century Bank and Trust Company.
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"We have spent considerable time reviewing the cannabis banking operation and remain very impressed with how these businesses have been served," said Bob Rivers, Chief Executive Officer and Chair of the Board of Eastern and Eastern Bank. "However, we have determined the business is not well-aligned with our approach to serving our business customers due to the special handling required with meeting the banking needs of cannabis-related businesses at this time. Needham Bank has solid capabilities to provide extensive service to this important business sector, and we applaud the strong commitment they are making to support the industry."
"The cannabis industry is rapidly growing, and this transaction presents an exciting opportunity and excellent entry into this evolving and dynamic segment," said Joseph Campanelli, President and Chief Executive Officer of Needham Bank. "Our entire Needham team looks forward to welcoming these customers and the team servicing them, and to ensuring their smooth transition to our organization."
The transaction is expected to close in the first half of 2022, subject to regulatory approval and other customary closing conditions. Terms of the transaction, which are not material to Eastern, were not disclosed. Over the coming months, cannabis banking customers will receive regular updates, including how to prepare for the transition pending regulatory approval. Customers with questions are invited to contact Cannabis Business Leader Paul Evangelista, who launched and led the cannabis banking strategy at Century Bank over the past nine years. Mr. Evangelista and his experienced team will continue working with customers during the transition period, and plan to join and remain with Needham Bank upon the closing of the transaction.
About Eastern Bankshares, Inc. and Eastern Bank
About Needham Bank
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