Northeast Bancorp sells insurance assets
Northeast Bancorp has sold its insurance division in two separate transactions totaling $9.7 million.
Bangor-based The Varney Agency purchased the assets of nine Northeast Bank Insurance Group offices in southern, central and western Maine, Northeast announced yesterday in a press release. Northeast Bank Insurance Group senior manager Brad Scott has acquired the assets of Spence and Mathews Insurance, which Northeast acquired in 2007. The agency has one office in Berwick and serves southern Maine and New Hampshire. Northeast will continue to have a relationship with the agencies by referring customers with insurance needs. The deals will add approximately $8.4 million to Northeast's tangible equity, according to the release.
Over the past six years, Lewiston-based Northeast acquired 11 Maine insurance agencies for a total of $13.8 million, a move former President Jim Delamater said was to diversify its income streams and offer customers "one-stop shopping." The bank predicted a 10% annual growth in its insurance business in 2009; however, growth has only been in the 1%-2% range, Mainebiz reported last year. In 2009, Northeast had $5.9 million in insurance brokerage income.
Last year, Northeast merged with Boston-based investor group FHC Formation LLC.
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