Bangor, ME and Damariscotta, ME - 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”), 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 expected to close after 4pm, 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.
This press release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and this statement is included for purposes of complying with these safe harbor provisions. Readers should not place undue reliance on such forward-looking statements, which speak only as of the date made. These forward-looking statements are based on current plans and expectations, which are subject to a number of risk factors and uncertainties that could cause future results to differ materially from historical performance or future expectations. These differences may be the result of various factors, including, among others: (1) failure of the parties to satisfy the closing conditions in the merger agreement in a timely manner or at all; (2) disruptions to the parties' businesses as a result of the announcement and pendency of the merger; (3) costs or difficulties related to the integration of the business following the proposed merger; (4) the risk that the anticipated benefits, cost savings and any other savings from the transaction may not be fully realized or may take longer than expected to realize; (5) changes in general business, industry or economic conditions or competition; (6) changes in any applicable law, rule, regulation, policy, guideline or practice governing or affecting financial holding companies and their subsidiaries or with respect to tax or accounting principles or otherwise; (7) adverse changes or conditions in the capital and financial markets; (8) changes in interest rates or credit availability; (9) changes in the quality or composition of loan and investment portfolios; (10) adequacy of loan loss reserves and changes in loan default and charge-off rates; (11) increased competition and its effect on pricing, spending, third-party relationships and revenues; (12) loss of certain key officers; (13) continued relationships with major customers; (14) deposit attrition, necessitating increased borrowings to fund loans and investments; (15) rapidly changing technology; (16) unanticipated regulatory or judicial proceedings and liabilities and other costs; (17) changes in the cost of funds, demand for loan products or demand for financial services; and (18) other economic, competitive, governmental or technological factors affecting operations, markets, products, services and prices.
The foregoing list should not be construed as exhaustive, and Bangor Bancorp, MHC and Damariscotta Bankshares, Inc. undertake no obligation to subsequently revise any forward-looking statements to reflect events or circumstances after the date of such statements, or to reflect the occurrence of anticipated or unanticipated events or circumstances.
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 in the Damariscotta area. After nearly fifty 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.