BEVERLY — North Shore Bank and Beverly Bank announced on Tuesday that they plan to merge.

The combined institution will be called North Shore Bank and will be led by current North Shore Bank President and CEO Kevin Tierney as chief executive officer. Beverly Bank President and CEO Michael Wheeler will stay on and become the president and chief operating officer.

North Shore Bank is based in Peabody, with headquarters on Route 114, while Beverly Bank is headquartered in downtown Beverly. Both banks were established in 1888.

In a joint statement, Tierney and Wheeler said the merger will create a bank with "a size and scale that will allow us to create an even stronger, more relevant bank for the future."

"The merger essentially combines two financially sound banks — both chartered in 1888 — who share a deep commitment to their customers and the communities they serve."

The newly formed bank will grow to $1.4 billion in assets with 18 full-service locations throughout Essex County and southern New Hampshire. All Beverly Bank employees will join the new organization, according to the press release.

The merger has been approved by the boards of directors of both organizations and is subject to approval by corporators of both banks, the Federal Deposit Insurance Corporation, and the Massachusetts Commissioner of Banks. The combined institution will continue to operate as a mutual and cooperative bank.

The merger is expected to be completed during the third quarter of 2019, according to the banks.

Staff writer Paul Leighton can be reached at 978-338-2675 or pleighton@salemnews.com.