Camden National Bank, the second-largest bank based in Maine, said Tuesday it plans to buy the parent company of Northway Bank, which is headquartered in North Conway, N.H.
The all-stock deal, valued at $86.6 million, would give Camden National 17 branches in New Hampshire, building a retail presence on its existing loan-office footholds in Manchester and Portsmouth.
The combined entity would have 74 branches in Maine and New Hampshire, $7 billion in assets and $5.5 billion in deposits. The company would operate under the Camden National name.
Both banks’ boards have approved the deal, which must now get regulatory approval.
Camden National (Nasdaq: CAC) said the deal “presents a unique opportunity to combine two high-quality and culturally aligned franchises with adjacent geographies, creating a premier publicly traded northern New England bank.”
“Camden National and Northway share a similar culture, consistent credit and risk profiles, and deep commitment to the communities we serve,” said Simon Griffiths, president and CEO of Camden National. “This union will increase our size and scale, and bolster our presence in New Hampshire, which we believe will drive profitability and shareholder value.
“Our customers, employees and communities will significantly benefit from broader product offerings, higher lending limits, and an enhanced customer experience.”
‘Competitive’ banking market
William Woodward, president, CEO and chairman of Northway Financial, said the merger will give an edge in a “significantly competitive market.”
“We are excited to announce this strategic combination with Camden National. The ability to have two organizations with similar missions come together positions us well in a significantly competitive market; particularly with an improved ability to allocate capital in more ways than we could on our own.
“Combined, we strengthen our foundations of a forward-thinking approach to community banking while best serving clients with whom we have built strong relationships over the years.” said Woodward. “With shared histories and community commitment, this alliance doesn’t just extend our influence; it drives significant operational enhancements and strategically positions us for future growth for years to come.”
Camden National’s two largest Maine-based competitors, Bangor Savings Bank and Bar Harbor Bank & Trust, each have significant presence in New Hampshire, and Bar Harbor Bank is also in Vermont.
Griffiths, who was named Camden National’s CEO in November 2023, indicated that other “meaningful growth” could follow.
“The merger will build upon our existing presence in New Hampshire and provide the opportunity to leverage our significant technology investments and advice capabilities across an expanded customer base,” Griffiths said. “Together, we will be able to unlock meaningful growth opportunities and create additional capacity for further strategic technology investments to deliver an enhanced offering for customers.
“I am excited to work with Northway’s impressive team to build upon both of our successful community banking franchises.”
Camden National took financial advice on the deal from Raymond James & Associates Inc. Its legal counsel is Sullivan & Cromwell LLP. Performance Trust Capital Partners LLC is the financial advisor to Northway, which turned to Goodwin Procter LLP for legal advice.
For now, Camden National, which is headquartered in Camden, has 57 branches in Maine and New Hampshire, and $5.7 billion in assets.
Northway Financial Inc. has 17 branches as well as loan production offices in North Conway, Laconia, Bedford, Concord and Portsmouth, N.H.