Abington Bank, a Massachusetts chartered co-operative bank with assets of $135 million, and Holbrook Co-operative Bank, a Massachusetts chartered co-operative with assets of $105 million, announced today that they have executed a definitive merger agreement.

The two banks will operate as Abington Bank upon completion of the merger, slated for 2017, following regulatory approval.

“The two banks have agreed that the continued commitment to each community, their customers and employees is a critical component of us coming together. Although Holbrook will merge into Abington, as a sign of the commitment to the Holbrook community, the Holbrook location will operate as “Holbrook Cooperative Bank, an affiliate of Abington Bank,” Patrick G. Waters, president and CEO of Holbrook Cooperative Bank, said in a statement.

“The combined organization will result in greater efficiencies through the consolidation of many back office functions, including risk management, compliance, finance, audit, IT, security and human resources,” Andrew J. Raczka, president and CEO of Abington Bank, said in a statement. “Our larger size will better enable us to provide the products and services our customers expect from their community bank.”

Luse Gorman PC served as legal counsel to Abington and K&L Gates LLP served as legal counsel to Holbrook.