Massbank Corp. agreed to a $170 million, or $40-a-share, buyout offer from Eastern Bank in Boston.
Massbank, a Massachusetts-chartered savings bank, closed Monday at $38.
The merger creates a $7.6 billion billion bank serving more than 400,000 consumers and businesses across eastern Massachusetts.
The parties expect the deal to close in the second half of this year.
Eastern's Chairman and Chief Executive, Richard E. Holbrook, will remain in his same posts following the merger.
Massbank's Chairman, President and Chief Executive Gerard H. Brandi will become a vice chairman of Eastern following the merger.
