Eastern Bankshares to Buy Century Bancorp for $642 Million

Eastern Bankshares Inc. said it agreed to buy fellow bank holding company Century Bancorp Inc. for $115.28 a share in cash, or about $642 million.

The deal, which would create an eastern Massachusetts banking company with $22 billion in assets, represents a 26% premium to Wednesday’s closing price of $91.44 for Century, based in Medford, Mass.

Boston-based Eastern, which raised about $1.7 billion in its initial public offering in October, said it expects to complete the acquisition in the fourth quarter.