Additionally, the Institution for Savings will fund a Charitable Foundation in the amount of $2 million for the benefit of not-for-profit organizations in the Cape Ann community — a step hailed by Rockport National Bank board of directors Vice Chairman Michael Shea.
“The Institution for Savings has had a rich tradition of stability and charitable giving since 1820,” Shea said in a prepared statement. “Our four contiguous retail banking offices will provide a powerful geographic footprint for the Institution for Savings on Cape Ann and Beverly.”
Institution for Savings, a mutual savings bank that opened the doors to its first branch in Newburyport in 1820, has an estimated $1.691 billion in assets, as estimated for Dec. 31 of last year, according to its website.
The Institution was ranked the seventh most profitable bank in the state in 2013, according to a letter to the community from Jones. The full letter appears as a full-page ad on Page 3 of today’s Daily News.
Jones also said in the letter that the Institution has donated $3 million to local nonprofit organizations over the last three years.
Part of the agreement with the Rockport acquisition is to form a new $2 million charitable foundation geared specifically for Cape Ann organizations.
The announcement comes seven months after the retirement of longtime Rockport National Bank CEO and President Peter Anderson, who stepped down last September after a 21-year run. Margaret Murphy had taken on the role as the bank’s president after serving in a variety of roles since joining Rockport National in 1993.
Under the agreement, shareholders of Rockport National Bancorp will receive $138.58 in cash in exchange for each share of Rockport common stock.
That represents a premium of some 127 percent over the recent closing price of $60.95 per share, roughly 193 percent of Rockport’s tangible book value as of Dec. 31, 2013, and approximately 29 times Rockport’s earnings for 2013, the statement indicated.