Camden National gets green light to buy Bank of Maine in $135M deal
File photo / Tim Greenway
Gregory A. Dufour, president and CEO of Camden National Bank, in a 2012 file photo.
The parent company of Camden National Bank said Monday it has received shareholder and regulatory approvals to buy The Bank of Maine in a deal valued at roughly $135 million.
The merger, which is set to close Oct. 16, will make the combined operation the largest bank headquartered in Maine, with approximately $3.6 billion in total assets, $2.4 billion in total loans and $2.6 billion in total deposits, Camden National Corp. (NASDAQ: CAC) said in its announcement. That volume of deposits will give it a 10.6% market share in Maine, right behind TD Bank and KeyBank, according to a filing with the U.S. Securities and Exchange Commission.
Shareholders for Camden National and The Bank of Maine approved the merger by a large margin on July 22, according to another SEC filing.
The combined operation will operate under the Camden National name and the leadership of Gregory A. Dufour, Camden National’s president and CEO.
"Obtaining all required regulatory and shareholder approvals are major milestones towards completion of the merger," Dufour said in a statement. "The overwhelming vote for the merger by each company's investors demonstrates the confidence and belief that as a combined organization the companies are even stronger."
Under the merger, the combined operation will have 64 branches, giving Camden National a stronger presence in southern Maine and an addition of stable, low-cost deposits to increase its market share, according to a presentation to shareholders filed with the SEC. Four branches in central and southern Maine are being closed because of market overlap between the two banks.
As part of the purchase, Camden National said it will convert 80% of Bank of Maine’s common shares into Camden National common stock and the remaining 20% into cash. Bank of Maine shareholders will be able to receive 5.421 shares of Camden National common stock or $206 in cash for each Bank of Maine share of common stock, Camden National added.
Camden National’s stock was trading at $40 per share at 11:21 a.m. Monday, down 0.17% from its opening.
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