Camden National to buy Bank of Maine

File photo / Tim Greenway Gregory A. Dufour, president and CEO of Camden National Bank, in a 2012 file photo.

Write a Comment

By Dylan Martin

The parent company of Camden National Bank has reached an agreement to buy the Bank of Maine in a deal that could make it the state's largest Maine-based bank.

Camden National Corp. (NASDAQ: CAC) announced on Monday that it signed an agreement with the Bank of Maine’s parent company, SBM Financial Inc., that would see the Bank of Maine merging into Camden National. The combined operation would have 68 branches.

Under the agreement, Camden National will pay SBM Financial shareholders approximately $135 million in stock and cash.

Gregory A. Dufour, president and CEO of Camden National Corp. and Camden National Bank, will lead the combined organization once the merger is complete. John Everets, the Bank of Maine’s chairman and CEO, will serve as a consultant for a one-year transition period.

Dufour told Mainebiz in a phone interview that the merger will allow the bank to fill a gap in the southern midcoast region, between Damariscotta and the Portland area. He said the addition of the Bank of Maine’s branches will also give the bank a stronger market share in the Augusta-Gardiner area and allow it to continue its expansion down the Interstate 95 corridor into Kittery.

With that geographic expansion, Dufour said it will help the bank continue to grow its commercial and retail banking services.

“We view the joining of these two banks as a way to ensure an independent Maine bank can remain that way,” he said, “because we believe it’s critically important to have Maine banks headquartered here to help Maine people and businesses.”

In the coming months, Dufour said, the bank will determine if any location changes will be made as part of the merger, which is expected to create some overlap between branches and departments. He said he hopes the impact on any positions can be mitigated through attrition and job vacancies.

If the merger is approved by stockholders and federal regulators, it could make Camden National the state’s largest Maine-based bank in terms of assets. Under the merger, the bank would have a total of $3.6 billion in assets, a $2.4 billion loan portfolio and $2.6 billion in deposits. That would give it the edge over Bangor Savings Bank, which as of Dec. 31, was considered the state’s largest Maine-based bank with $3.1 billion in assets, according to a list compiled by Mainebiz for its March 23 issue.

Everets, who joined the Bank of Maine in 2010, said in a prepared statement, “We are pleased to be joining a strong and growing institution.” He added: “Our two institutions share a rich history in Maine, and our combined size and shared cultures will position us to provide added scale to benefit our customers, communities and shareholders alike.”

Correction: A previous version of this story incorrectly stated Camden National Bank's asset size.

Camden National program to help the homeless

Here are the four branches Camden National plans to close after buying the Bank of Maine