Camden National Bank has agreed to acquire The Bank of Maine under a definitive agreement signed between Camden National Corporation, the parent company of Camden National Bank and SBM Financial, the parent company of The Bank of Maine.
The acquisition will be financed through a combination of stock and cash valued at approximately $135m based on Camden National’s closing price of $38.60.
Under the terms of the agreement, 80% of SBM Financial common shares will be converted into Camden National common stock and the remaining 20% will be exchanged for cash.
The merged bank will have 68 branches from York to Calais with about 700 employees, and more than $3bn in assets.
Camden National Corporation and Camden National Bank president and CEO Gregory Dufour said: "The union of these two great organizations will redefine what it means to be a community bank.
"This is a strong business combination that enhances our competitive market position and will allow us to realize efficiency benefits. The Bank of Maine is a well-run company with an attractive core deposit base and branch network combined with healthcare specialty lending and mortgage businesses that provide new sources of growth and diversification.
"Camden National’s acquisition experience, familiarity with The Bank of Maine’s markets and the fact that both banks operate the same systems will facilitate a seamless integration for our new employees and customers."