Cambridge Financial in Mass. to buy neighboring cooperative bank

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Cambridge Financial Group in Massachusetts has agreed to buy Melrose Bancorp in Massachusetts.

The $4.2 billion-asset Cambridge Financial said in a press release Thursday that it will pay $57.5 million in cash for the parent of the $337 million-asset Melrose Bank. The deal is expected to close in the second quarter.

Melrose, a cooperative bank, has one branch.

“We are pleased to announce that we are partnering with Melrose to expand our presence in Middlesex County,” Wayne Patenaude, Cambridge’s president and CEO, said in the release.

“As local banks, we share similar core values and a relationship-centric approach to serving the communities that we are fortunate to be a part of,” Patenaude added. “This transaction is a very natural and contiguous expansion of our current footprint.”

Keefe, Bruyette & Woods and Luse Gorman advised Melrose.

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