Eastern Bankshares Inc. and Needham Bank have announced an asset purchase agreement in which Eastern’s cannabis-related and money service business deposit relationships are set to be transferred to Needham.
These assets were originally acquired during Eastern’s merger with Century Bank and Trust Company.
The transaction is expected to be completed within the first half of 2022, subject to regulatory approval.
Over the coming months, Cannabis banking customers will receive regular updates, inclusive of the preparation for the transition.
Customers with questions surrounding the transition have been directed to contact Cannabis business leader, Paul Evangelista, who launched and led the banking strategy at Century Bank over the past nine years.
Evangelista and his team plan to continue working with customers throughout this transitionary period and will continue with Needham Bank when the transaction has been completed.
Bob Rivers, chief executive officer and chair of the board of Eastern and Eastern Bank, said: “We have spent considerable time reviewing the cannabis banking operation and remain very impressed with how these businesses have been served.
“However, we have determined the business is not well-aligned with our approach to serving our business customers due to the special handling required with meeting the banking needs of cannabis-related businesses at this time. Needham Bank has solid capabilities to provide extensive service to this important business sector, and we applaud the strong commitment they are making to support the industry.”
Joseph Campanelli, president and chief executive officer of Needham Bank, added: “The cannabis industry is rapidly growing, and this transaction presents an exciting opportunity and excellent entry into this evolving and dynamic segment.
“Our entire Needham team looks forward to welcoming these customers and the team servicing them, and to ensuring their smooth transition to our organization.”