Bar Harbor Bankshares (NYSE American: BHB) announced that its banking subsidiary, Bar Harbor Bank & Trust (“BHBT”), has signed a definitive agreement to acquire eight branches located in central Maine with approximately $287 million of deposits, $111 million of loans and $284 million of assets under management (as of March 31, 2019) from People’s United Bank, National Association (“People’s”.
Both banks will be working closely to ensure a seamless transition for customer accounts and associates transferring to BHBT. The Company intends to offer continued employment to the professionals associated with People’s central Maine region, which is anticipated to close in the fourth quarter of 2019. This acquisition is subject to regulatory approval from the Federal Deposit Insurance Corporation and the State of Maine and the satisfaction of customary closing conditions. The eight branches will increase BHBT’s total branch count to 56 in its footprint, and 22 in the State of Maine. The Company is well positioned to integrate the new branches into its existing operations and deliver the product depth and local responsiveness that it has become known for.
President and Chief Executive Officer, Curtis C. Simard stated, “We are pleased to welcome our new colleagues, customers and communities to our already deep Maine roots. We look forward to servicing their banking and Wealth Management needs, and to providing our full suite of personal and commercial deposit and loan products. We believe this acquisition provides our existing and new customers enhanced convenience and underscores our commitment to Maine while expanding into contiguous markets in a sensible way. These branches stretch across the central Maine I-95 corridor with four branches in the greater Bangor market and includes all deposits from People’s central Maine territory.”
Mr. Simard stated “This transaction contributes to our financial and long term strategic goals with manageable risk based on our experienced team’s history of successful acquisitions and system integrations. We plan to use the acquired deposits to replace certain existing higher cost of borrowings which will result in an immediate accretion to earnings and will support future growth with additional core funding. Incremental earnings will allow for an estimated earn-back of tangible book value per share less than a period of five years. At closing the Company will pay a 6.3% premium on average total deposits plus a premium of 1.2 times annualized wealth management revenue and approximately $4.4 million for the fair value of premises and equipment acquired.”
Griffin Financial Group, LLC served as financial advisor to Bar Harbor Bankshares and K&L Gates served as outside legal counsel. A presentation with additional information regarding the branch acquisition is attached as an exhibit and can be found on their website.