PORTSMOUTH — Officials at Optima Bank & Trust Company and Cambridge Bancorp in Massachusetts have announced a merger.
As a result of an agreement approved by the board of directors at both companies, Optima will merge into Cambridge Trust in a stock and cash transaction expected to be completed during the second quarter of next year.
Optima, founded in 2008, is headquartered in Portsmouth and opened a branch in Dover this February. The bank also has locations in Bedford, North Hampton, Stratham and at the Pease Tradeport in Portsmouth.
The transaction is valued at approximately $67 million, based on Cambridge Bancorp’s closing price Dec. 4.
Key members of the Optima team and the bank’s President and CEO Daniel Morrison will become part of the Cambridge team to help drive the company’s future growth in southern New Hampshire, according to a press release.
Morrison said Thursday they have not yet made any other decisions regarding employees at this point, but details are being worked out as the two companies join forces. Morrison founded Optima in 2008 with his wife, Pamela Morrison, who serves as the bank’s executive vice president and chief administrative officer.
Daniel Morrison said Cambridge Trust has been in their market since 1996 and has amassed $1.1 billion in New Hampshire-based wealth management assets. He believes the merger will offer customers the best of both the banking and wealth management worlds.
“We think it’s going to be very good for our customers,” Morrison said. “It seems like the perfect strategic fit.”
Denis Sheahan, CEO of Cambridge Trust, said by joining forces they will be able to provide their wealth management clients with access to a full suite of private banking services and convenient office locations, while Optima customers will benefit from their investment management, wealth planning and trust services.
Gerald H. Little, New Hampshire’s bank commissioner, said he could not comment specifically on the merger, but said the current trend is for financial institutions to partner up to provide more services to customers.
“This is a trend that has been going on across the country for many years now, and I believe this will continue,” Little said. “It is applying equally to banks and credit unions as well.”
As of Sept. 30, Optima had approximately $524 million in total assets, $466 million in loans and $489 million in deposits. The combined company will have over $2.5 billion in assets, $1.9 billion in gross loans, $2.2 billion in deposits and $3.2 billion of wealth management assets upon completion of the transaction.