Salem Five Bancorp has agreed to buy Georgetown Bancorp in a deal that will combine two Massachusetts banks.

The $4 billion-asset Salem Five said in a press release Thursday that it will pay about $49 million, or $26 a share, in cash for the $300 million-asset parent of Georgetown Bank. The merger, which is expected to close in the first quarter, values Georgetown at 148% of its tangible book value.

The deal will allow Salem Five to expand into Massachusetts’ Merrimack Valley and southern New Hampshire.

Sandler O'Neill and K&L Gates advised Salem Five. Keefe, Bruyette & Woods and Luse Gorman advised Georgetown.

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.