Eastern Bank to buy Cambridge Bancorp for $528M

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Cambridge Bancorp will merge into Eastern Bankshares in an all-stock deal worth $528 million, the banks announced Tuesday.

Upon approval, the merger will create a $27.1 billion combined company with a strong foothold in the Boston metro area, where they’re both based.

Cambridge CEO Denis Sheahan will join Eastern as CEO; and Eastern President Quincy Miller will take on the role of vice chair, president and chief operating officer. Sheahan and Miller will report to current Eastern CEO Bob Rivers, who will become executive chair and chair of the board of directors.

Three additional Cambridge directors will be elected to Eastern’s board of directors.

“As we set our sights on the future, the enhanced capabilities and financial strength created by this merger will allow us to further position Eastern as the region’s local financial partner of choice, delivering enhanced value for our customers and shareholders, greater support for our communities, and increased opportunities for our colleagues,” Rivers said in a prepared statement.

Cambridge had $5.5 billion in total assets, $4 billion in total loans, $4.4 billion in deposits and $4.4 billion in client assets under management and administration as of June 30. On top of the $27.1 billion in total assets the combined company is expected to have, it will also have $18.0 billion of total loans, $22.6 billion of deposits and $7.6 billion of AUMA when the deal is expected to be completed in the first quarter of 2024.

Following the close, which is subject to both regulatory and shareholder approval, the combined wealth management and private banking divisions will operate under the Cambridge Trust moniker.

Eastern is also offloading its wholly owned subsidiary Eastern Insurance Group to global insurance broker Arthur J. Gallagher & Co., based in Illinois, for $510 million, freeing up capital to then be redeployed in Eastern’s core banking business.

“Gallagher is a proven insurance leader, and I have full confidence that they will continue the strong level of service our insurance customers have come to expect,” Rivers said in a prepared statement. “We look forward to continuing our relationship with Gallagher as our insurance brokerage partner.”

After taxes, the net gain on the sale of Eastern Insurance is expected to be about $260 million.

The sale of Eastern Insurance is expected to close in the fourth quarter. Firm leadership and employees are expected to join Gallagher with the deal, Eastern said.

Image by: Eastern Bank

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Edmund Shing, PhD

Global Chief Investment Officer
BNP Paribas Wealth Management

Edmund has over 29 years of experience in financial markets in a wide variety of positions, ranging from proprietary trading to portfolio manager in a number of financial institutions in London and Paris.  He previously held the role of Global Head of Equity and Derivative Strategy at BNP Paribas in London from 2015 to 2020, and has been Chief Investment Officer at BNP Paribas Wealth Management since November 2020.

Edmund is responsible for piloting our investment strategy and will continues to rollout out recommendations and themes with actionable advice that brings our expertise to our clients and support to our client-facing teams.  In this time of change, his expertise in following and anticipating markets is a true value added for both our customers and those at Wealth Management who serve them.

Edmund has a PhD in Cognitive and Computing Science from the University of Birmingham in the United Kingdom, and has done advanced studies in Knowledge-Based Systems and in Experimental Psychology.  He is an EFFAS-certified financial analyst. He has also authored the book “The Idle Investor” published by Harriman House in 2015, proposing 3 simple investment strategies that take only a few minutes to execute per month.

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