Savings Bank gets $60M in new capital
Savings Bank of Maine has released more details about its plan to recapitalize, bringing $60 million in new capital to the Gardiner-based bank from the group of investors acquiring the bank.
Last week, the Office of Thrift Supervision approved Saving Bank's recapitalization plan to be acquired by a new holding company, SBM Financial Inc. The bank yesterday announced Gardiner-based SBM Financial has absorbed the bank's two existing holding companies, restructured its debt, acquired all its common stock and raised $60 million of new funds, according to a press release from the bank. The capital infusion exceeds the requirements set forth by OTS, which in March ordered the bank to double its capital-to-assets ratio to 10.76% by the end of September.
As part of the recapitalization process, longtime Savings Bank President Arthur Markos will retire. John Everets, former CEO of Boston's GE/HPSC, will serve as new chairman and CEO, while Willard Soper, former senior vice president of Boston's Shawmut Bank, will serve as president. The bank's board of directors will also be replaced with new members, including David Ott, former chief banking officer of Banknorth, Richard Field, co-founder of Lending Tree and former Bank of New York executive, and Robert Gardiner, president of Brunswick-based Independence Wind and former president of Maine Public Broadcasting Network.
In August 2009, federal regulators issued the bank a cease-and-desist order, saying the bank was engaging in "unsound practices" and operating with insufficient capital. Savings Bank of Maine has 32 branches and $929.1 million in total assets.
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