The Federal Deposit Insurance Corp. has approved Bar Harbor Bankshares' application to acquire Augusta-based Border Trust Co. The Maine Bureau of Financial Institutions has already signed off on the deal, paving the way for its completion.
Bar Harbor Bankshares in May signed an agreement to acquire most of the assets and liabilities of Border Trust and continue to operate all of its branches in Augusta, South China and Topsham. 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. The company plans to find jobs for as many of Border Trust's 22 employees as it can.
The deal is expected to close as early as August, after waiting periods dictated by the FDIC and Maine bureau expire, and other closing conditions are met, according to a press release.