Shares of First Seacoast Bancorp (NASDAQ:FSEA) leapt 46.2% after the company and Cambridge Financial Group, Inc. reached a definitive merger agreement that will fold First Seacoast Bank into Cambridge Savings Bank.
Under the terms of the all-cash deal, valued at approximately $80.9 million, holders of First Seacoast Bancorp common stock will receive $17.25 per share. The agreement names Cambridge Savings Bank as the surviving institution following the merger.
Cambridge Savings Bank will take over operations of all First Seacoast Bank branches as branch locations of the surviving bank. That change will expand Cambridge Savings Bank's retail network to a total of 24 full-service offices, representing a consolidation of the two institutions' physical footprints in the Seacoast region.
Executives from both organizations described the transaction as a move to strengthen community banking in the Seacoast area. Ryan A. Bailey, President and Chief Executive Officer of Cambridge Savings Bank, said the merger "builds on First Seacoast Bank's legacy in the Seacoast region," and that it will deepen the combined company's commitment to local people, businesses, and nonprofit organizations.
James R. Brannen, Chief Executive Officer of First Seacoast Bank, said the combination with Cambridge Savings Bank will better address the expanding needs of businesses and communities in the Seacoast area while maintaining continuity of community banking services for customers.
The merger remains subject to customary closing conditions, including receipt of required regulatory approvals and approval from First Seacoast Bancorp shareholders. The parties expect the transaction to close in the third quarter of 2026, assuming those conditions are met.
Financial advisors were named on both sides of the transaction. Piper Sandler & Co. is serving as financial advisor to Cambridge Financial Group, while Keefe, Bruyette & Woods, a Stifel Company, is advising First Seacoast Bancorp.
Key points
- All-cash acquisition valued at about $80.9 million - First Seacoast shareholders to receive $17.25 per share.
- First Seacoast Bank will merge into Cambridge Savings Bank, which will operate all existing First Seacoast branches as part of a 24-office network.
- The deal is meant to reinforce local banking ties in the Seacoast region and is subject to regulatory and shareholder approval.
Risks and uncertainties
- The transaction is contingent on regulatory approval - the banking sector and local customers could be affected if approvals are delayed or denied.
- Shareholder approval from First Seacoast Bancorp is required before closing - the outcome of that vote will determine whether the deal proceeds.
- The closing is expected in the third quarter of 2026 but remains subject to customary closing conditions, which introduces timing uncertainty for markets and stakeholders.
This announcement directly affects regional banking in the Seacoast area, local businesses and nonprofit organizations served by the banks, and holders of First Seacoast Bancorp shares. Market participants will watch regulatory and shareholder milestones as the transaction progresses toward the expected third-quarter 2026 close.