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August 24, 2010

Northeast Bancorp merger delayed

The timeline for an investor group's merger with Lewiston-based Northeast Bancorp has been pushed back two months to allow for federal review.

The Maine Bureau of Financial Institutions granted a 60-day extension to FHB Formation LLC, which plans to purchase nearly $30 million in new and outstanding shares of Northeast Bancorp, in order to give the Federal Reserve more time to review the transaction, according to the Portland Press Herald. Northeast Bancorp CEO Jim Delamater told the paper "there are no issues" with the application. The merger, announced in April, received approval from the shareholders last month but must still pass muster with federal and state regulators. The extension is effective as of Aug. 18.

A trio of New England banking executives, operating as FHB Formation LLC, plans to buy $16.2 million in new shares of the bank holding company and 40% of Northeast's outstanding common stock for $12.9 million. The investors would own approximately 60% of Northeast's common stock.

For more on the merger, read "Taking stock."

Go to the article from the Portland Press Herald >>

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