- Key Insight: Cambridge Savings Bank had been building up its equity capital for two years, just in case a good opportunity for an acquisition came along. Now the bank says that opportunity has arrived.
- Supporting Data: Cambridge Financial Group has entered a deal to buy First Seacoast Bancorp for $80.9 million.
- Expert Quote: "We built our capital to find the right deal at the right time," said Cambridge CEO Ryan Bailey.
A mutual bank can only use cash to make acquisitions. Luckily, Cambridge Savings Bank has plenty of it.
Cambridge Financial Group, the Massachusetts-based holding company of Cambridge Savings Bank, announced Tuesday that it has reached an agreement to acquire First Seacoast Bancorp, the New Hampshire-based owner of First Seacoast Bank, in an all-cash deal worth $80.9 million.
Cambridge is a mutual savings bank, which means it cannot use stock to pay for acquisitions. But for the past two years, the $7 billion-asset community bank had been saving its pennies in case a potential acquisition came along. At the end of 2025, Cambridge's equity capital totaled $703.5 million, up 16% from 2023.
So when an opportunity arose to buy the $599.5 million-asset First Seacoast, Cambridge was ready.
"We built our capital to find the right deal at the right time, and this opportunity allows us to advance our community banking reach into a growing region of New England," Cambridge CEO Ryan Bailey told American Banker via email. "We are very excited to move into this market and build upon the great work First Seacoast has done."
In March, Bailey
First Seacoast appears to fit that bill. The community bank has five branches in Southeast New Hampshire, just north of the Boston area. Once the merger is complete, those locations will operate as branches of Cambridge Savings Bank.
"First Seacoast is a well-respected financial institution operating in a growing region, which we feel creates a great opportunity for [Cambridge] to further grow its reach," Bailey said. "For example, we are confident that we can further expand our commercial banking expertise into the New Hampshire market."
Another benefit of the merger, Bailey said, is the two banks' "cultural alignment" — something First Seacoast's CEO, James Brannen, referred to as well.
"Our mutual commitment to exceptional service and community engagement is an excellent basis that will allow us to move forward and remain true to the same values that have supported our success for the last 135 years," Brannen said in a statement.
The merger, which is still awaiting the approval of regulators and First Seacoast's shareholders, is expected to close in the third quarter of 2026.
Though Cambridge is somewhat constrained by its mutual status, First Seacoast is not the only bank it's acquired in recent years. In 2020, it paid about $58 million in cash to purchase the $333.8 million-asset Melrose Bancorp in Melrose, Massachusetts.
Between Melrose and First Seacoast, Cambridge has shown a predilection for buying banks with deep New England roots. Both Melrose and First Seacoast were founded in 1890. Cambridge itself was founded in 1834.
Massachusetts has seen a busy period of bank M&A activity recently. In July 2025,
Even after Cambridge completes its acquisition of First Seacoast, it will still have firepower in its equity capital war chest. And though the bank is focused on that merger for now, Bailey did not shut the door on other potential purchases.
"As we continue our strategic growth, we will remain open to opportunities that support our customers, communities, and the future of our financial institution," Bailey said.
