Bangor Bancorp, MHC, parent company of Bangor Savings Bank, and Maine-based Damariscotta Bankshares, Inc. (OTC: DMSQ) (“Damariscotta”), parent company of Damariscotta Bank and Trust Company (“DB&T”), today jointly announced entry into a definitive agreement pursuant to which Damariscotta Bankshares, Inc. will be combined with Bangor Bancorp, MHC and Damariscotta Bank & Trust (DB&T) will merge into Bangor Savings Bank. The merger agreement was unanimously approved by the Boards of Directors of both bank holding companies and their subsidiary banks.
Under the terms of the transaction, shareholders of Damariscotta will receive $27 in cash in exchange for each share of Damariscotta common stock for a transaction valued in aggregate at approximately $35 million. The consideration represents approximately 185% of Damariscotta’s tangible book value per share as of September 30, 2019, according to a Dec. 17 news release.
When finalized, the merger will give Bangor Savings new branch locations in Belfast, Damariscotta, New Harbor, Union, and Warren, strengthening the Bank’s position in Maine’s Midcoast, the release said.
The merger with Damariscotta Bank & Trust is in keeping with Bangor Savings Bank’s strategic goal of investing where it can best serve its customers, and these new communities are part of that.
“We’re excited to welcome Damariscotta Bank & Trust to the Bangor Savings Bank family,” said Bangor Savings President and CEO, Bob Montgomery-Rice, in the release. “Both banks are deeply committed to their employees, their customers, and the communities they serve. We also share similar values of developing authentic relationships with customers and being their trusted financial advisor.”
“As a mutual bank, we are accountable to our Board, our employees, our customers, and our communities. Because of that, we’re able to operate independently and retain the personal approach and local perspective of a smaller bank—with a focus on valuing and listening to customers. At the same time, we’ve been able to drive growth and enhance our customers’ experiences by significantly investing in new, convenient branches, safe and secure technology, and new products and services. We feel that makes us a good fit for a great bank like DB&T, and we’re happy that they agree,” stated Montgomery-Rice.
Scott Conant, Damariscotta Bank & Trust President and CEO said: “This transaction is beneficial to the shareholders, customers, and communities served by DB&T. We are proud of what we have built here at DB&T and are confident that our customers will continue to receive the community banking experience they have come to know in banking with us, while enjoying access to additional products and services that a larger community bank like Bangor Savings Bank can offer. Both organizations are consistently recognized by Best Places to Work in Maine, making this a good opportunity for our employees as well. We have confidence everyone involved will continue to be in good hands.”
Pending regulatory and Damariscotta shareholder approvals, Bangor Savings Bank intends to complete the transaction in the second quarter of 2020. After completion of the merger, the combined entity is expected to have $4.8 billion in assets and more than 60 branch offices throughout Maine and New Hampshire.
About Damariscotta Bank & Trust
Damariscotta Bank & Trust was started by local businessmen in the early 1970s to meet the needs of families and small businesses inthe Damariscotta area. After nearly 50 years of service to the communities in the Midcoast Maine region, they are proud of their success in fulfilling those needs, and of their expansion in Lincoln, Knox and Waldo counties.
About Bangor Savings Bank
Bangor Savings Bank, with more than $4.4 billion in assets, offers retail banking to consumers as well as comprehensive commercial, corporate, payroll administration, merchant services, and small business banking services to businesses. The Bank, founded in 1852, is in its 167th year with 57 branches in Maine and New Hampshire and on the Web at www.bangor.com. The Bangor Savings Bank Foundation was created in 1997. Together the Bank and its Foundation invested more than $2 million into the community in the form of nonprofit sponsorships, grants and partnership initiatives last year. Bangor Savings Bank is an equal opportunity employer.