Established in 1987, Northmark offers a full range of personal and customised banking services to individuals, businesses and non-profit organisations and had $442m of total assets, $314m of gross loans and $381m of deposits, as of 31 March 2022
Cambridge Bancorp to acquire Northmark Bank in $63m deal. (Credit: aymane jdidi from Pixabay)
Cambridge Bancorp, the holding company for Cambridge Trust, has signed an agreement to acquire full-service commercial bank Northmark Bank in an all-stock deal valued at $63m.
Under the terms of the merger deal, each share of Northmark common stock will be exchanged for 0.9950 shares of Cambridge common stock.
The transaction is valued at $79.54per share of Northmark common stock, based on the closing price of Cambridge shares as of 20 May 2022.
As part of the merger, Northmark founder, president and CEO Jane Walsh will join Cambridge Bancorp and Cambridge Trust as a director.
The combined company is expected to have $5.5bn in assets, $3.7bn in gross loans and $4.9bn in deposits, along with Cambridge’s $4.7bn of wealth management assets.
Walsh said: “We are excited about the opportunity to partner with Cambridge Trust. “Cambridge Trust’s strong commitment to its clients, employees and communities closely align with Northmark’s focus on relationships and civic and corporate responsibility.
“Together we will build a premier private banking and wealth management company within Massachusetts and New Hampshire.”
The transaction has been unanimously approved by the boards of directors of both companies.
It is expected to close in the fourth quarter of 2022, subject to regulatory approval, approval by Northmark shareholders, and other customary closing conditions.
Established in 1987, Northmark offers a full range of personal and customised banking services to individuals, businesses and non-profit organisations.
The company had $442m of total assets, $314m of gross loans and $381m of deposits, as of 31 March 2022.
With the transaction, Cambridge is enabled to expand its presence in Massachusetts.
It will benefit from Northmark’s three full-service banking offices in North Andover, Andover and Winchester communities, in the Massachusetts region.
Furthermore, Cambridge’s merger agreement with Northmark follows its acquisition of Wellesley Bancorp in 2020 and Optima Bank & Trust in 2019.
Piper Sandler & Co. served as financial advisor and Hogan Lovells US as legal counsel to Cambridge on the transaction, while Goodwin Procter served as legal counsel and Griffin Financial as financial advisor and provided a fairness opinion to Northmark.
Cambridge Trust chairman, president and CEO Denis Sheahan said: “Since Northmark’s founding in 1987, the management team and board have created a franchise that provides exceptional service to its clients in locations where Cambridge currently does not have banking offices.
“Northmark’s dedication to providing individuals and businesses with customised attention and tailored financial solutions will greatly complement our broad range of products and services, including private banking and wealth management.”