Commerce To Buy Hub-Based Bank
Commerce Bank will buy Mercantile Capital Corp. and its subsidiary, Mercantile Bank & Trust Co. of Boston, in an all-cash deal worth an estimated $26.5 million, Commerce announced today.
The acquisition brings the long-time Worcester financial institution into the Boston market. The combined organization will have assets of $1.6 billion and 16 retail banking offices serving customers across central and eastern Massachusetts, including three offices in the Boston metropolitan area.
David G. Massad, Commerce chairman, said: "We look forward to joining with the talented team at Mercantile and further developing their already deep relationships in their community and with their customers."
Completion of the merger is subject to meeting some conditions, including regulatory approvals. The transaction has been approved by the boards of directors of both companies and is expected to be completed in the third quarter of this year. Both sides expect Mercantile Bank & Trust Co. will become part of Commerce.
"Commerce Bank and Mercantile Bank are both committed to providing superior service and serving the needs of the communities in which we do business," Commerce Bank President and CEO Brian W. Thompson said. "This transaction will provide customers of both institutions with greater access to a wide selection of products and services, increased lending opportunities, new capabilities, and innovative solutions that meet their evolving needs."
Charles P. Monaghan, president and CEO of Mercantile, added: "We are pleased that Commerce will maintain and continue to build upon Mercantile's small business lending initiatives and deep commitment to the Boston market, allowing us to serve a broader range of customers through commercial and real estate lending and become an even more active SBA lender."
Mercantile had about $192 million in assets at the end of last year, about 14 percent that of Commerce's estimated $1.4 billion, according to Commerce.
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