BOSTON - Eastern Bankshares, Inc. (NASDAQ:EBC), the holding company for Eastern Bank, announced the upcoming addition of four Cambridge Bancorp (NASDAQ:CATC) board members to its board, effective with the anticipated completion of the two companies' merger around July 12, 2024. This move follows the necessary approvals for the merger, which was initially announced on September 19, 2023.
Denis Sheahan, Cambridge's Chairman, President, and CEO, is set to become CEO of Eastern and will join the Eastern Board of Directors. Joining him will be three other Cambridge directors: Leon A. Palandjian, Cathleen A. Schmidt, and Andy S. Zelleke, bringing expertise from various sectors including banking, real estate, risk management, and corporate governance.
Current Eastern CEO and Chair, Bob Rivers, will assume the role of Executive Chair of the Eastern Boards.
Rivers expressed confidence in the appointed directors, highlighting their respected leadership and understanding of the company's commitment to stakeholders and local communities. He anticipates that their expertise will contribute to the combined entity's goal of becoming Greater Boston's premier local bank and the largest bank-owned independent investment advisor in Massachusetts.
The merger is expected to close on or about July 12, 2024, at which time the new board members will assume their roles.
The directors' backgrounds span a range of industries and experiences. Palandjian is the Chief Risk Officer of Intercontinental Real Estate Corporation and has been involved with Cambridge Bancorp since 2006.
Schmidt has a strong background in banking and legal services, including her most recent role as CEO of McLane Middleton. Zelleke has an extensive history in academia and corporate governance, currently serving as a Senior Lecturer at Harvard Business School. Sheahan, who will take the helm as CEO of Eastern, has been leading Cambridge Trust Company and Cambridge Bancorp since 2015.
This announcement is based on a press release statement.
InvestingPro Insights
As Eastern Bankshares, Inc. (NASDAQ:EBC) prepares to welcome Cambridge Bancorp (NASDAQ:CATC) board members following their merger, investors and stakeholders may be interested in the financial health and prospects of Cambridge Bancorp. According to InvestingPro data, Cambridge Bancorp has a market capitalization of $541.49 million and a Price-to-Earnings (P/E) ratio of 15.65 based on the last twelve months as of Q1 2024, which reflects investors' expectations of the company's earnings growth.
Despite a revenue decline of 16.0% over the last twelve months as of Q1 2024, Cambridge Bancorp has maintained a solid operating income margin of 32.74%. This indicates efficient management of its operations relative to its revenue. Additionally, the company boasts a strong track record of dividend reliability, with dividend payments maintained for 26 consecutive years, and has a current dividend yield of 3.88%. This commitment to returning value to shareholders is a positive signal, especially for income-focused investors.
Among the InvestingPro Tips, it's noted that analysts predict Cambridge Bancorp will remain profitable this year, a sentiment that aligns with the company's performance over the last twelve months. However, investors should also be aware of the company's weak gross profit margins and the expectation that net income may drop this year. These factors could influence the long-term value of the merger with Eastern Bankshares, Inc. and should be considered when evaluating the combined entity's future prospects.
For those looking for deeper insights, there are additional InvestingPro Tips available for Cambridge Bancorp at https://www.investing.com/pro/CATC. To access these tips and more detailed analytics, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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