Bangor Bancorp, MHC, parent company of Bangor Savings Bank, which has branches throughout NH, and Maine-based Damariscotta Bankshares, Inc. (OTC: DMSQ) (“Damariscotta”), parent company of Damariscotta Bank and Trust Company (“DB&T”), announced they received final approval on November 10, 2020 from the Federal Deposit Insurance Corporation, the final required regulatory approval for the merger pursuant to which Damariscotta will be combined with Bangor Bancorp, MHC and DB&T will merge into Bangor Savings Bank.
The merger received approval from the Federal Reserve on October 22 and had previously been approved by the Maine Bureau of Financial Institutions in June and unanimously approved by the Boards of Directors of both bank holding companies and their subsidiary banks.
“With this final approval, we can now take the necessary and thoughtful steps forward to join with an institution that, like us, is committed to its employees, customers, and communities,” said Bangor Savings Bank President and CEO, Bob Montgomery-Rice. “Together, our two organizations are in an even better position to more fully serve customers throughout MidCoast Maine. We look forward to welcoming these new customers and learning what matters most to them.”
Under the terms of the transaction, shareholders of Damariscotta will receive $27.00 in cash in exchange for each share of Damariscotta common stock for a transaction valued in aggregate at approximately $35 million.
The transaction is anticipated to close on November 30, 2020. After completion of the merger, the combined entity is expected to have $5.9 billion in assets and more than 60 branch offices throughout Maine and New Hampshire.
“We’re confident our customers are in good hands and that they will continue to receive the community banking experience they have come to know in banking with us,” said Scott Conant, Damariscotta Bank & Trust President and CEO. “Both banks share a lot of the same values, and our customers and employees will benefit.”
The merger will give Bangor Savings Bank new branch locations in Damariscotta, New Harbor, Union, and Warren, further expanding the Bank’s position in Maine’s MidCoast region. As a condition of regulatory approval by the Federal Reserve, Bangor Savings Bank is required to divest some deposit and loan accounts in Waldo County, as well as the DB&T’s Belfast location at 1 Belmont Ave. First National Bank entered into an agreement with Bangor in September to acquire these accounts and branch from Bangor Savings Bank, with an anticipated close on December 11, 2020. The merger with DB&T advances Bangor Savings Bank’s strategic goal of investing where it can best serve its customers, and more thoroughly serving MidCoast Maine is part of that.