Randolph Savings Bank in Massachusetts has agreed to buy First Eastern Bankshares in Andover, Mass.

The $388 million-asset Randolph Savings did not disclose financial terms for the deal, which is expected to close by early 2016.

First Eastern is the holding company for the $73 million-asset First Federal Savings Bank of Boston and First Eastern Mortgage. James McDonough, Randolph Savings' chief executive, said in a press release that it is interested in First Eastern, in part, because of its mortgage business.

"A key component of our growth strategy has been investment in our residential lending division," McDonough said.

First Eastern Mortgage has eight mortgage-loan production offices in eastern Massachusetts and services $700 million of mortgage loans. After the deal closes, Randolph Savings' said it expects to originate more than $500 million yearly in residential mortgage loans.

Peter Fraser, First Eastern's president, will lead Randolph's residential division after the acquisition closes.

First Federal Savings Bank has a branch in Andover.

Randolph Savings Bank, a unit of Randolph Bancorp in Stoughton, Mass., has six branches.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.