Two mutual savings banks in Massachusetts, Marlborough Savings Bank and North Middlesex Savings Bank, are merging.
Marlborough Savings Bank is a subsidiary of , which in turnis a unit of Marlborough BancsharesMHC. It had about $533.6 million in assets as of March 31. Ayer, Mass.-basedNorth Middlesex Savings Bank had approximately $410.9 million in assets at the endof March, according to SNL data.
SNL valuations for bank and thrift targets in the Northeast regionbetween July 13, 2015, and July 13, 2016, averaged 120.89% of book, 132.29% of tangiblebook and had a median of 32.13x last-12-months earnings, on an aggregate basis.
The mergeris expected to be completed in the fourth quarter, subject to the receipt of regulatoryapproval and the approval of both parties' corporators. The combined bank will haveclose to $1 billion in assets, $95 million in equity and 14 branches. The transactionwill also result in a merger of the two banks' charitable foundations, accordingto a July 13 news release.
Based on SNL data, the combined bank will operate nine branchesin Middlesex County, Mass., ranked No. 22 with a 1.06% share of approximately $51.95billion in total market deposits. It will operate five branches in Worcester County,Mass., ranked No. 23 with a 1.19% share of about $14.58 billion in total marketdeposits.
A name for the combined bank is expected to be announced duringthe fourth quarter. Rebranding is projected to be completed during 2017, accordingto information posted on Marlborough Savings Bank's website.
Walter Dwyer IV, president and CEO of North Middlesex SavingsBank, will serve as president of the combined bank and its holding companies. RichardBennett, president and CEO of Marlborough Savings Bank, will be CEO. The boardsof the combined bank and its holding companies will consist of eight directors fromMarlborough Savings Bank and seven directors from North Middlesex Savings Bank.
No staff reductions will occur as a result of the merger, accordingto the news release.