Subsequent Events

6 Months Ended

Jun. 30, 2024

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Acquisition of Cambridge Bancorp

Effective July 12, 2024, the Company completed its previously announced merger with Cambridge. In accordance with the merger agreement, each share of Cambridge common stock was exchanged for 4.956 shares of Company common stock. The transaction was intended to qualify as a tax-free reorganization for federal income tax purposes and provided Cambridge shareholders with a tax-free exchange of their shares of Cambridge common stock in exchange for Company common stock as the consideration they received in the merger. The Company issued 38.9 million shares of its common stock in the merger. Based upon the closing price of Company common stock on July 12, 2024 of $14.87 per share, the transaction is valued at approximately $580.6 million which includes cash paid in-lieu of fractional shares and recognition of RSU and PSU service accruals for service accrued by Cambridge personnel prior to the merger.

Cambridge, a Massachusetts corporation, was a federally registered bank holding company headquartered in Cambridge, Massachusetts. Cambridge Trust Company, a Massachusetts-chartered trust company formed in 1890, was a wholly-owned subsidiary of Cambridge that operated through a network of 19 full-service banking offices in eastern Massachusetts and New Hampshire with $5.3 billion in total assets and $3.9 billion in deposits as of July 12, 2024. Cambridge’s core services also included wealth management. Through its wealth management group, which has offices in Massachusetts and New Hampshire, it offered comprehensive investment management, as well as trust administration, estate

settlement, and financial planning services. Cambridge had assets under management and administration of approximately $5.0 billion as of July 12, 2024.

The Company has not yet completed the purchase accounting due to the timing of the merger. Accordingly, the fair value of the assets and liabilities acquired, including goodwill and other intangible assets, is not yet available.

Following the completion of the merger, the Company sold substantially all of the investment securities acquired through its merger with Cambridge. The amount of securities sold amounted to approximately $0.9 billion and no gain or loss was recognized upon sale as such securities had been recorded by the Company based upon the quoted sale prices in determination of the purchase accounting fair value adjustment.