Bangor Savings to acquire Damariscotta Bank & Trust in $35M deal
Bangor Savings Bank, the state’s largest bank in assets, plans to acquire Damariscotta Bank & Trust Co., the holding companies of both financial institutions said Tuesday.
Bangor Bancorp MHC will purchase Damariscotta Bankshares Inc. (OTC: DMSQ) for roughly $35 million, pending approvals by regulators and Damariscotta shareholders, according to a joint news release. The boards of both banks have approved a merger agreement and the transaction is expected to be completed in the second quarter of 2020.
The price, $27 in cash for each share of DMSQ, represents about 185% of Damariscotta’s book value on Sept. 30, according to the release.
It is not clear yet how the deal might affect Damariscotta's 50 staffers. Bangor Savings employs nearly 900 people and has assets of $4.4 billion, according to its most recent financial report. In its upcoming Book of Lists, which will come out Dec. 23, Mainebiz ranks the bank as the state's largest, while Damariscotta is No. 20. Its assets are currently about $200 million, according to the bank.
The acquisition will add six bank locations in Belfast, Damariscotta (two locations), New Harbor, Union and Warren to the 55 branches Bangor Savings now operates in Maine and five in New Hampshire. The geographic growth in the midcoast area is “in keeping with Bangor Savings Bank’s strategic goal of investing where it can best serve its customers,” the release said.
Last year, Bangor Savings acquired Granite Bank of New Hampshire, expanding its footprint beyond Maine. The $45 million deal added four locations and $241 million in assets to the bank.
Bangor Savings President and CEO Bob Montgomery-Rice said in Tuesday's release, “We’re excited to welcome Damariscotta Bank & Trust to the Bangor Savings Bank family. Both banks are deeply committed to their employees, their customers, and the communities they serve. We also share similar values of developing authentic relationships with customers and being their trusted financial advisor.”
Scott Conant, Damariscotta Bank & Trust president and CEO, added, “This transaction is beneficial to the shareholders, customers and communities served by DB&T. We are proud of what we have built here at DB&T and are confident that our customers will continue to receive the community banking experience they have come to know in banking with us.”
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