Rockland banking firm to buy a rival

SAN FRANCISCO - Independent Bank Corp., the Massachusetts lender that raised its dividend in March, agreed to buy rival Benjamin Franklin Bancorp. yesterday for $125 million in stock to expand into local markets.

Each outstanding share of Benjamin Franklin common stock will be converted into 0.59 share of Independent Bank common stock, the companies said. The transaction is valued at $15.77 a share, based on Rockland, Mass.-based Independent Bank's closing price of $26.73 on Friday.

The price represents a 21 percent premium to Franklin, Mass.-based Benjamin Franklin's closing share price of $13.05.

The acquisition has been approved by the boards of both companies and is expected to close in the second quarter of next year.

Benjamin Franklin is a community bank with about $1 billion in assets.

Independent is the parent of Rockland Trust Co., which has $3.5 billion in assets, 61 retail branches, 10 commercial lending centers, and five mortgage-origination centers in Southeastern Massachusetts.