LOWELL, MA – Enterprise Bancorp Inc. (NASDAQ:EBTC), currently trading at $40.06 and showing signs of being slightly overvalued according to InvestingPro Fair Value metrics, disclosed in a recent SEC filing that Joseph R. Lussier, an executive officer, has been granted a retention bonus agreement. This move comes as part of the company's merger plans with Independent Bank (NASDAQ:INDB) Corp., as detailed in the Form 8-K filed today.
The retention bonus agreement, dated Tuesday, December 17, 2024, provides Lussier with a $100,000 bonus, split into two equal installments. The first $50,000 is set to be paid by December 31, 2024, contingent on Lussier's continued employment and good standing with Enterprise Bank. The second installment will follow within 30 days after the completion of the merger, again dependent on his employment status at the time.
Enterprise Bancorp, a state commercial bank headquartered in Lowell, Massachusetts, with a market capitalization of $490.6 million and an impressive 73.61% stock price return over the past six months, is preparing to merge with Independent (LON:IOG) Bank Corp., the parent company of Rockland Trust Company. The merger agreement was initially announced on December 8, 2024.
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This news is based on the latest SEC Form 8-K filing from Enterprise Bancorp Inc. and does not include any speculative or promotional content.
In other recent news, Enterprise Bancorp has disclosed amendments to CEO Steven R. Larochelle's employment agreement ahead of a merger with Independent Bank Corp and Rockland Trust Company.
The agreement, which will see Independent as the surviving corporation, includes new severance benefits for Larochelle should his employment terminate post-merger. Independent Bank Corp's acquisition of Enterprise Bancorp, valued at $562 million, is expected to close in the latter half of 2025 and is predicted to boost the company's earnings per share by 16% in 2026. Keefe, Bruyette & Woods have responded positively to this development, raising their price target for Independent Bank Corp to $82.
Enterprise Bancorp has also announced a series of executive changes, including the resignation of Chief Operating Officer Stephen J. Irish, who will transition to a Technology and Operations Advisor role before retiring in 2025. Brian M. Collins will take over the COO position, while David Lynch has been appointed as the new Managing Director and Chief Investment Officer of Enterprise Wealth Management.
Lastly, Enterprise Bancorp has declared a quarterly dividend of $0.24 per share, scheduled for payment in December 2024.
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