Salem Five Bancorp has agreed to acquire Georgetown Bancorp Inc., and its subsidiary, Georgetown Bank, for approximately $42.2 million.

Under the terms of the agreement, Georgetown Bancorp Inc. shareholders will receive $26 in cash in exchange for each share of Georgetown Bancorp common stock.

Following the completion of the merger, which is expected to close during the first quarter of 2017, the combined entity is expected to have approximately $4.3 billion in assets.

The respective boards of each parent company have unanimously approved the transaction. The transaction is still subject to receipt of state and federal regulatory approvals and approval by shareholders of Georgetown Bancorp.

Sandler O’Neill & Partners L.P. acted as financial advisor to Salem Five Bancorp, and Keefe, Bruyette & Woods Inc. acted as financial advisor to Georgetown Bancorp Inc. K&L Gates LLP served as legal counsel to Salem Five Bancorp and Luse Gorman PC served as legal counsel to Georgetown Bancorp.