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Salem Five Cents Savings Bank to acquire Lowell, Mass.-based Sage Bank

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Salem Five Cents Savings Bank to acquire Lowell, Mass.-based Sage Bank

Salem, Mass.-based Salem Five Cents Savings Bank, a unit of Salem Five Bancorp, is acquiring Lowell, Mass.-based Sage Bank.

The terms of the deal were not disclosed. The transaction is anticipated to close in the third quarter, subject to regulatory and shareholder approvals.

On an aggregate basis, the deal value represents 113.0% of book and tangible book. It is 6.59% of assets, 10.23% of deposits and has a tangible book premium-to-core deposits ratio of 1.64%.

For comparison, SNL valuations for bank and thrift targets in the Northeast region between April 30, 2017, and April 30, 2018, averaged 148.44% of book, 150.58% of tangible book and had a median of 36.17x last-12-months earnings, on an aggregate basis.

The deal will see Salem Five Bancorp expand in Middlesex County, Mass., by two branches to be ranked No. 17 with a 1.27% share of approximately $59.31 billion in total market deposits.

Sage Bank has more than $140 million in assets, while Salem Five has assets of $4.7 billion, according to the merger release.

Sandler O'Neill & Partners LP served as financial adviser and rendered a fairness opinion to Sage Bank in the transaction.

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