Bangor Savings Bank plans to acquire a bank with six branches in Maine’s midcoast region, adding another financial institution’s assets to the portfolio of the largest Maine-based bank.
Leaders from Bangor Savings and Damariscotta Bank and Trust said Tuesday they had reached an agreement for the Damariscotta-based bank to become part of the Bangor Savings Bank umbrella that has grown to 57 branches and more than $4.4 billion in assets in recent years.
Bangor Savings Bank last acquired a smaller bank in 2018 when it took ownership of Granite Bank in New Hampshire. The Bangor bank last year become the largest bank based in Maine, edging out Camden National Bank.
Damariscotta Bank had $198 million in assets at the end of 2018, according to its latest annual report.
Under the terms of the transaction, shareholders of the Damariscotta-based bank will receive $27 in cash for each share, working out to a transaction worth $35 million total.
The acquisition will require the approval of shareholders of both banks and state and federal regulators.
Bangor Savings Bank hopes to complete the acquisition by June or July 2020, said CEO Bob Montgomery-Rice.
“If you’re a customer of Damariscotta, nothing is changing right now, and in the future you will get a lot of communication from us,” he said.
Bangor Savings Bank, with nearly 1,000 employees, has been looking to further expand its footprint across Maine, said Kate Rush, the bank’s senior vice president of community relations.
“Our footprint went to Brunswick and there was a gap south of Camden,” she said. “This filled a hole in our footprint that we were anxious to fill.”
Damariscotta Bank has branches in five towns in the midcoast: Damariscotta, Belfast, Union, New Harbor (in the town of Bristol) and Warren.
Bangor Savings Bank, which also has a branch in Belfast, will seek regulators’ advice on how to proceed in that city in terms of keeping branch locations open, Rush said.
Customers of Damariscotta Bank will also gain access to a wider array of services after the acquisition, Montgomery-Rice said, including free ATMs, wealth management services, payroll services and more lending services.
“We will be able to serve customers from Portsmouth, New Hampshire, to Eastport,” Montgomery-Rice said. “My team and I are excited to provide the best services along the coast.”
Bangor Savings does not yet know whether it will lay off any employees as part of the acquisition.
“That will all be determined through the process,” Rush said.
Damariscotta Bank and Trust CEO Scott Conant touted the transaction in a prepared statement, saying customers would have access to more products and services and that they could expect the same “community banking experience” under new ownership.
“We have confidence everyone involved will continue to be in good hands,” he said.