North Shore Bank in Peabody, Mass., has agreed to merge with Saugusbank in Saugus, Mass.

The banks said in a press release that they will form a cooperative that will operate as North Shore Bank. The terms of the deal, which is expected to close in the third quarter, were not disclosed.

North Shore has $470 million in assets and 11 branches. Saugusbank has $200 million in assets and three branches.

David LaFlamme, North Shore's president and chief executive, will serve as CEO of the bank and its holding company, North Shore Bancorp. Saugusbank President and CEO Kevin Tierney will become president and chief operating officer of the bank and holding company. All Saugusbank employees and directors will join North Shore.

"As a larger institution the bank will also be able to offer enhanced products and services, greater employment opportunities and expanded branch access," the companies said in the release.

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