Photo by James Sanna | Banker & Tradesman Staff
The parent company of Cambridge Trust Co. plans to acquire North Andover-based Northmark Bank in an all-stock deal valued at $63 million.
The $442 million-asset Northmark Bank has three full-service branches in North Andover, Andover and Winchester, and Cambridge Trust announced that the merger would expand its Massachusetts presence.
The transaction has been unanimously approved by the boards of directors of both companies, the announcement said, and is subject to regulatory approval and approval by Northmark’s shareholders. The deal is expected to close in the fourth quarter.
“We are pleased to announce the strategic combination of Cambridge Trust and Northmark Bank,” Denis Sheahan, Cambridge Trust chairman, president and CEO said in a statement. “Since Northmark’s founding in 1987, the management team and board have created a franchise that provides exceptional service to its clients in locations where Cambridge currently does not have banking offices. These locations are a logical extension of our market.”
Jane Walsh, founder, president and CEO of Northmark will join Cambridge Bancorp, the parent company, and Cambridge Trust as a director.
“We are excited about the opportunity to partner with Cambridge Trust,” Walsh said in a statement. “Cambridge Trust’s strong commitment to its clients, employees and communities closely align with Northmark’s focus on relationships and civic and corporate responsibility. Together we will build a premier private banking and wealth management company within Massachusetts and New Hampshire.”
Northmark Bank has $314 million of gross loans and $381 million of deposits. The combined company based on March 31 metrices is expected to have $5.5 billion in assets, $3.7 billion in gross loans and $4.9 billion in deposits, along with Cambridge’s $4.7 billion of wealth management assets, the merger announcement said.
The merger agreement will see each share of Northmark common stock exchanged for 0.9950 shares of Cambridge common stock, the announcement said. Based upon Cambridge’s closing price of $79.94 as of May 20, the transaction is valued at $79.54 per share of Northmark common stock, or approximately $63 million.
