Merger with N.H. bank expands Bangor Savings' footprint
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Bob Montgomery-Rice, president and CEO of Bangor Savings Bank, shown in this file photo, announced today that the bank is merging with Granite Bank, a wholly owned subsidiary of First Colebrook Bancorp Inc. that has four branches in New Hampshire and assets of $262.4 million.
Bangor Bancorp MHC announced plans today for Bangor Savings Bank to merge with Granite Bank, a wholly owned subsidiary of First Colebrook Bancorp Inc. that has four branches in New Hampshire and assets of $262.4 million.
The merger agreement was unanimously approved by the boards of directors of both bank holding companies and their subsidiary banks on Monday, Oct. 23.
A news conference about the merger agreement was held this morning at Bangor Savings headquarters at 99 Franklin St. in Bangor.
Pending regulatory and First Colebrook Bancorp shareholder approval, Bangor Savings intends to complete the transaction in the second quarter of 2018. If approved, the combined entity would have $4 billion in assets and 59 branch offices throughout Maine and New Hampshire.
Granite Bank operates four full service banking offices located in Colebrook, Concord, Amherst and Portsmouth, N.H.
Bangor Savings expansion continues
Under the terms of the transaction, shareholders of First Colebrook will receive $45 in cash in exchange for each share of First Colebrook stock for a transaction valued in aggregate at approximately $45 million. The consideration represents approximately 185% of First Colebrook’s tangible book value per share as of June 30, 2017.
Earlier this year, Bangor Savings expanded its footprint into New Hampshire by opening a limited service branch in Portsmouth, N.H, offering mortgage and business/commercial lending, along with payroll and merchant services. The merger with Granite Bank complements the bank’s long-term vision to provide highly accessible and trusted local financial services to even more customers in northern New England.
“We’re excited to welcome Granite Bank to the Bangor Savings Bank family,” Bangor Savings President and CEO Bob Montgomery-Rice said in a news release. “Both banks share a culture of developing real relationships with customers, and making their banking life easier.”
“We’ve been able to drive growth and improve the customer experience by significantly investing in new branches, technology that makes customers feel safe and secure and new products and services,” Montgomery-Rice added. “We feel that makes us a good fit for a great bank like Granite, and we’re happy that they agree.”
Scott Cooper, Granite Bank president and CEO, said the transaction should benefit his bank’s shareholders, customers, communities and employees.
“Bangor Savings is a consistent ‘Best Place to Work in Maine’ organization that describes their employees as their most valuable asset,” he stated. “We have confidence that our employees, as well as our customers and the communities we serve, will continue to be in good hands.”
FIG Partners LLC served as financial advisor to Bangor Bancorp MHC and Hogan Lovells US LLP served as its legal counsel. Sander O’Neill + Partners served as financial advisor to First Colebrook Bancorp and provided a fairness opinion to its board of directors and Cranmore, FitzGerald & Meaney served as its legal counsel.
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