Gorham Savings to leave Kennebunk, targets September opening in Yarmouth
Photo / Jim Neuger
Steve deCastro, president and CEO of Gorham Savings Bank, says the company does not plan any further branch closings other than in Kennebunk.
Gorham Savings Bank plans to close its small Kennebunk branch later this year, but targets a September opening in Yarmouth.
In Monday's announcement, the bank cited geography and administrative challenges as the primary reasons for leaving Kennebunk so that it can meet growing demand in the greater Portland area.
Steve deCastro, president and CEO of Gorham Savings, told Mainebiz in a phone interview that the bank decided not to extend its lease in Kennebunk, which he said had been struggling and "is not a great full-service branch location."
"Not that Kennebunk isn't a great market for banking," he added, "but we had to decide whether we're going to spend a lot of money and make it right and devote our resources to things like our Yarmouth project, which is a lot closer and in our footprint."
While the moves will leave the number of Gorham Savings Bank locations unchanged at 13, Bar Harbor Bankshares (NYSE: BHB) is bulking up in central Maine with the purchase of eight People's United Bank branches announced Monday.
Financial terms were not disclosed, but the buyer said the eight branches have about $287 million in deposits, $111 million in loans and $284 million in assets under management. The deal will boost Bar Harbor Bank's total branch count to 56, including 22 in Maine.
More details from Gorham Savings Bank
DeCastro said that the Kennebunk branch employs two people, and that there will "absolutely" be positions for them at other branches, adding that "they'll be highly sought after" elsewhere in the company.
The team is to remain on site at 30 Main St. in Kennebunk until Nov. 1.
DeCastro said there were no plans to close further branches.
In Yarmouth, Gorham Savings had previously targeted a summer opening for a new branch in a former Grand Trunk Railway building that's being renovated. DeCastro said Monday the bank is now aiming for early September.
"The weather's been so wet in the spring, that it set us back a little bit," he said.
He added that there will probably be an initial team of three staff members, and that Gorham Savings hopes to pick up some customers from the former Bank of America branch in Yarmouth that recently closed.
DeCastro said that while there are no near-term plans to open other branches, it would be open to looking at any opportunities that arise.
DeCastro joined Gorham Savings in July 2016 and became CEO in January.
In a March "On the Record" interview with Mainebiz, he described his management style as low-key like that of his predecessor, Chris Emmons, and said the bank will continue to add to its commercial banking group.
He told Mainebiz on Monday that the company just made five new hires, in retail and business banking, adding to its workforce of just under 200.
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