Cambridge Savings Bank announced on Wednesday it has entered into a definitive merger agreement to acquire Melrose Bank, a state-chartered cooperative bank with total assets of approximately $337 million.

Under the terms of the agreement, shareholders of the holding company Melrose Bancorp will receive $25 in cash per share. The transaction is expected to close in the second quarter of 2020. Following the effective time of the merger, Cambridge will continue to operate Melrose Bank’s office, located on Main Street in Melrose, as a branch of Cambridge Savings Bank.

Following the completion of the transaction, Cambridge Savings Bank will have consolidated assets of approximately $4.7 billion and a branch network of 17 full-service offices.

“We are pleased to announce that we are partnering with Melrose to expand our presence in Middlesex County,” Wayne Patenaude, president and CEO of Cambridge Savings Bank, said in a statement. “As local banks, we share similar core values and a relationship-centric approach to serving the communities that we are fortunate to be a part of.”

Patenaude added that the transaction was a natural and contiguous expansion of Cambridge Savings Bank’s footprint.

“We are thrilled about this combination with Cambridge,” Jeffrey D. Jones, president and CEO of Melrose Bank, said in a statement. “The infrastructure that has been assembled at Cambridge over the years will enable our customers to access a substantial product offering while still receiving the local decision making and the exceptional service they have become accustomed to at Melrose.”

The merger is subject to regulatory approval and the approval of the shareholders of Melrose Bancorp.