Cambridge Bancorp in Massachusetts has agreed to buy Optima Bank & Trust in Portsmouth, N.H.
The $2 billion-asset Cambridge said in a press release Wednesday that it will pay $67 million in cash and stock for the $524 million-asset Optima. The deal, which is expected to close in the second quarter, priced Optima at 191% of its tangible common equity.
Cambridge, which has three wealth management offices in New Hampshire, will have six branches after the deal closes. Cambridge said it manages $1.1 billion of wealth assets for clients in New Hampshire.
Optima has $466 million of loans and $489 million of deposits.
The acquisition “is a natural fit and consistent with our growth strategy to become the premier private bank and wealth management company throughout Greater Boston and southern New Hampshire,” Denis Sheahan, Cambridge’s CEO, said in the release.
"By joining forces, we’ll be able to provide our wealth management clients in New Hampshire with access to a full suite of private banking services and convenient office locations," Sheahan added.
Cambridge said it expects the deal to be about 3.6% 3.6% accretive to its 2020 earnings per share. It should take a little more than three years to earn back the roughly 3.8% dilution to Cambridge’s tangible book value per share.
Cambridge said it expects to incur $6.5 million in merger-related expenses. It plans to cut about a third of Optima’s annual operating expenses, or roughly $4.4 million.
Daniel Morrison, Optima’s chairman, president and CEO, and other key employees will join Cambridge. Morrison will also join Cambridge’s board.
Keefe, Bruyette & Woods and Hogan Lovells advised Cambridge. Sandler O'Neill and Goodwin Procter advised Optima.
