Needham Bank and Eastern Bankshares, the stock holding company for Eastern Bank, said that Needham has completed the transfer of the cannabis banking and money service businesses from Eastern after receiving the necessary regulatory approvals.
With this transaction, Needham also hired the cannabis banking team involved with the business offering, including Executive Vice President Paul Evangelista, who launched and led the cannabis banking strategy at Century Bank over the past nine years. Needham is additionally subletting Eastern's Medford branch so customers can continue to bank in a familiar location.
"We've spent the last couple of years analyzing the cannabis industry and the significant compliance and regulatory resources necessary to be successful. We've made a number of investments in our infrastructure and believe the addition of Paul and his team has made the transition as seamless as possible for this customer segment," said Joseph Campanelli, President and Chief Executive Officer of Needham Bank. "This is an exciting opportunity for us and we look forward to building relationships with our new customers and continuing to serve our communities."
"It was a pleasure working with Needham Bank to finalize this transaction," said Bob Rivers, Chief Executive Officer and Chair of the Board of Eastern and Eastern Bank. "The cannabis banking customers are in good hands thanks to Needham Bank's suite of products and cash management services, and I look forward to seeing these businesses thrive with their thoughtful approach to banking this specialized industry."
The asset purchase agreement was announced on January 14, 2022, and Needham received the necessary regulatory approvals in March 2022.