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Cambridge uses Optima to enter New Hampshire banking sector
Posted on Thursday, 06 December 2018 12:45
Cambridge Bancorp is acquiring Optima Bank & Trust in a cash-and-stock deal worth USD 67.00 million to strengthen its existing New Hampshire franchise and establish a platform for future banking and wealth management growth.
The state ranks seventh in the US in millionaires per capita, eighth in household income and is a contiguous market with demographic similarities to Boston.
Furthermore, the region’s three counties of Rockingham, Strafford, and Hillsborough represent over USD 20.00 billion in Federal Deposit Insurance Corporation accounts.
Cambridge is the parent company of Cambridge Trust, a Massachusetts-based chartered commercial bank with about USD 2.00 billion in assets and ten locations in Cambridge, Boston, Belmont, Concord, Lexington, and Weston.
The group claims to be one of the leaders in New England’s private banking and wealth management with USD 3.20 billion in client assets under management and administration and offices in Boston and Concord, Manchester and Portsmouth.
Cambridge currently manages USD 1.10 billion of wealth assets for New Hampshire-based clients but does not have a comprehensive banking operation in the state.
Through the acquisition of Optima, the holding company will be getting its hands on six established branches in Portsmouth, Dover, Stratham, North Hampton, and Bedford, as opposed to having to build a network from the ground up.
Portsmouth-headquartered Optima had total assets of USD 524.00 million, net loans of USD 462.00 million and deposits of USD 489.00 million, as of 30th September.
The group booked a net profit of USD 2.30 million in the last 12 months, and had a return on average assets of 0.5 per cent and efficiency ratio of 76.30 per cent, as of 30th September.
It is currently ranked 12th in New Hampshire by deposit share of 1.4 per cent, though, when based on community banks, it is seventh.
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