Banknorth Group announced Monday its plan to buy the parent company of Boston Federal Savings Bank. The deal is worth $195 million in cash and stock. Boston Federal has 16 branches throughout the Boston area and assets of $1.7 billion.
Banknorth is based in Portland, Maine. Its subsidiaries include Banknorth Vermont, Banknorth Massachusetts, Bank of New Hampshire, Evergreen in New York and Peoples Heritage in Maine.
Banknorth has been working to boost its presence in Massachusetts. Earlier this year it bought Cape Cod Bank and Trust and Foxborough Savings Bank. The deal for Boston Federal is expected to close early next year.