Eastern Bankshares, Inc. Announces Agreement to Sell the Insurance Operations of Eastern Insurance Group, LLC to Arthur J. Gallagher & Co. and Enters Into Definitive Agreement to Merge with Cambridge Bancorp
Summary
“ 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.” Sheahan commented, “ I am delighted to be a part of bringing together two terrific companies who share common values and vision. On a pro forma basis for December 31, 2023, Eastern expects to maintain robust capital levels with a forecasted common equity tier 1 ratio of approximately 14.5%. Arthur J. Gallagher & Co. (NYSE:AJG), a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois. Factors relating to the proposed transactions that could cause or contribute to actual results differing materially from expected results include, but are not limited to, the possibility that revenue or expense synergies or the other expected benefits of one or both transactions may not materialize in the timeframe expected or at all, or may be more costly to achieve; that one or both transactions may not be timely completed, if at all; that prior to the completion of the transactions or thereafter, Eastern or Cambridge may not perform as expected due to transaction-related uncertainty or other factors; that Eastern is unable to successfully implement its integration or disposition strategies; that required regulatory, shareholder or other approvals are not obtained or other closing conditions are not satisfied in a timely manner or at all for one or both transactions; that the timing of completion of the proposed mergers are each dependent on various factors that cannot be predicted with precision at this point; reputational risks and the reaction of the companies’ customers to one or both transactions; the inability to implement onboarding or transition plans and other consequences associated with the mergers; continued pressures and uncertainties within the banking industry and Eastern and Cambridge’s markets, including changes in interest rates and deposit amounts and composition, adverse developments in the level and direction of loan delinquencies, charge-offs, and estimates of the adequacy of the allowance for loan losses, increased competitive pressures, asset and credit quality deterioration, and legislative, regulatory, and fiscal policy changes and related compliance costs; and diversion of management time on transaction-related issues. Except as required by law, each company specifically disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.