A share of Century Bancorp, Inc. (NASDAQ: CNBKA) increased by 25.04% or $22.90 during normal trading on Thursday to conclude the session at $114.34. In comparison to the average daily volume of 18.05K shares, the trading volume of Century Bancorp stock on the day remained 0.43 million shares. CNBKA stock rose following news of a merger agreement with another bank.
The merger deal:
3 Tiny Stocks Primed to Explode
The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.
We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.
Click here for full details and to join for free
Sponsored
The Century Bancorp is the parent company of Century Bank and Trust. A state-chartered $6.4 billion commercial bank with 27 branches in the Boston area, Century Bank and Trust offers a full range of services including business, personal, and institutional.
Read More
Century Bancorp and Eastern Bankshares announced Thursday that they have entered into an all-cash agreement for the $642.1 million proposed transaction.
- It was only six months before this in-market transaction that Eastern’s initial public offering achieved a $1.7 billion of valuation.
- As of December 31, 2020, Century’s tangible book value, when viewed in reference to the current purchase price of $642 million, represents 175 times the book value.
- Based on Eastern’s estimates, the transaction should result in approximately 55% increase in earnings and have an IRR of around 17%.
- Using cash on hand on its balance sheet, Eastern will fund the purchase price.
- Eastern also announced an increase of 33% to its quarterly dividend to $0.08 per share in line with its capital management initiatives.
Will CNBKA benefit from this deal?
Partnerships like this make sense because Century Bancorp (CNBKA) has complementary business models and values common with Eastern. Through a commitment to innovation and technology, Eastern will give customers of CNBKA greater access to services and banking products best suited to meet their diverse needs.
