Andover Bancorp Completes Acquisition of GBT Bancorp

Andover Bancorp, a Massachusetts-chartered savings bank, has finalized its acquisition of GBT Bancorp, expanding its presence in Essex County and enhancing commercial banking capabilities. The merger, approved by GBT shareholders, was initiated in January and received regulatory approval in June. The acquisition adds $1.7 billion in assets to Andover Bancorp, with the option for GBT shareholders to receive stock or cash compensation, totaling $20.50 per share.

Key Takeaways:

• The acquisition significantly enhances Andover's franchise in Essex County, where it has the third-largest deposit market share.
• The merger increases commercial banking capabilities and adds $1.7 billion in assets to Andover Bancorp.
• GBT shareholders can choose to receive 0.7543 shares of Andover common stock or $20.50 per share in cash, or a combination of both, to the extent available.
• The acquisition is expected to contribute positively to Andover's earnings per share in 2001.
• Andover Bancorp, Inc. is the holding company parent of Andover Bank, a Massachusetts-chartered savings bank organized in 1834.
• Andover Bank operates 13 banking offices in Massachusetts and New Hampshire.
• The acquisition is expected to be accounted for using the purchase accounting method.

Statistics:

• $1.7 billion in assets added to Andover Bancorp as a result of the merger.
• $20.50 per share in cash compensation available to GBT shareholders.
• 0.7543 shares of Andover common stock available to GBT shareholders as part of the merger agreement.
• 13 banking offices operated by Andover Bank in Massachusetts and New Hampshire.
• 2001: The year in which the acquisition is expected to positively contribute to Andover's earnings per share.

Sources:

• PRNewswire
• Andover Bancorp, Inc. (AndoverBank.com)
• Securities Act of 1933, as amended, and Securities Exchange Act of 1934, as amended.