Border Trust selling Augusta branch
Augusta-based Border Trust is planning to consolidate its branches in the capital city as part of its ongoing efforts to boost capital and satisfy federal regulators.
The bank will close its location at Augusta's Cony Circle at the end of next week and relocate branch operations, as well as three employees, to its corporate office on Water Street on Nov. 14, according to the Kennebec Journal. Border Trust plans to sell the Cony Circle branch to an undisclosed financial institution in a few weeks, and will keep its branches in South China and Topsham. In August, the bank sold its Jackman branch to Skowhegan Savings Bank, providing it with more than $1 million in new capital.
The bank has been operating under a cease-and-desist order from the Federal Deposit Insurance Corp. since August 2009, which ordered the bank to reduce its delinquent loans and expenses, and improve earnings, among other stipulations. In July, it received a loan from an unnamed private investor that gave it $447,000 to pay off and restructure debt. As of September, the bank recorded $61.6 million in assets, a decrease of nearly $23 million since last year. Border Trust succeeded in meeting the FDIC's March 31 deadline for boosting its capital-to-asset ratios, but still has negative earnings, according to the paper.
Go to the article from the Kennebec Journal >>
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