Bar Harbor Bankshares, which operates 12 bank branches in midcoast and Down East Maine, said Wednesday that it has agreed to acquire Border Trust Co. to expand into new markets.
Bar Harbor Bankshares will operate all three Border Trust branches, in Augusta, South China and Topsham.
“This combination is a logical step in our defined strategy to expand further south and west into markets with attractive demographics, long-term growth potential and where we have already established significant commercial banking relationships,” said Bar Harbor Bankshares CEO and President Joseph Murphy. “For some time, our business customer base in the Topsham/Brunswick area has urged us to establish a branch in that location, and we are delighted that this combination provides us a physical location in such an attractive market.”
Border Trust, founded in 1969 and based in Augusta, had about $46.9 million in assets, $41.1 million in deposits and $37.2 million in loans as of March 31. In comparison, Bar Harbor had $1.22 billion in assets and $724.4 million in deposits.
Bar Harbor, founded in 1887, said it will offer permanent positions to as many Border Trust employees as possible. Any employee who cannot get a permanent job will get a severance package based on years of service, and continued benefits and access to outplacement services. The number of employees with each company was not immediately available Tuesday.
Border Trust, a subsidiary of Border Bancshares Inc., said its customers will benefit from the broad services offered by Bar Harbor Bankshares.
“We know that Bar Harbor’s lending capacity, product diversity and commitment to customer service will bring exciting improvements to our local markets,” said Border Trust CEO, Vice Chairman and President Earle Harvey.
Bar Harbor Bankshares will assume all deposit liabilities and pay a 3.85 percent deposit premium for all core deposits. It also will purchase Border Trust’s loan portfolio at a 3 percent discount to book value, excluding some properties and non-performing loans. The purchase price will be adjusted, depending on the difference between acquired assets and assumed liabilities at closing.
Staff Writer Jessica Hall can be contacted at 791-6316 or at: jhall@mainetoday.com
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