Bar Harbor Bankshares has signed an agreement to acquire Augusta-based Border Trust and continue to operate all of its branches in Augusta, South China and Topsham.
Through its subsidiary, Bar Harbor Bank, the company will acquire most of the assets and liabilities of Border Trust, should regulators approve the deal, the bank said in a press release. Bar Harbor will pay a 3.85% premium for all of Border Trust's core deposits, and will purchase the majority of its loan portfolio at a 3% discount on book value. As of March 31, Border Trust had approximately $46.9 million in assets, $41.1 million in deposits and $3.7 million in loans.
Joseph Murphy, president and CEO of Bar Harbor Bankshares, said the move is part of the bank's strategy to expand south and west into new markets, and that customers have previously asked them to establish a branch in the Topsham area. He said the company will offer permanent jobs to as many Border Trust employees as it can, and those who aren't offered a job will receive a severance package. As of Dec. 31, Border Trust had 22 full-time-equivalent employees.
The deal is expected to close in the third quarter of this year.