Maine-based Camden National is acquiring a New Hampshire bank in a nearly $87 million deal.
In announcing the deal Tuesday, Camden National said the merger with North Conway-based Northway Financial Inc., parent company of Northway Bank, will create a “premier publicly traded northern New England Bank.”
“This union will increase our size and scale, and bolster our presence in New Hampshire, which we believe will drive profitability and shareholder value. Our customers, employees, and communities will significantly benefit from broader product offerings, higher lending limits, and an enhanced customer experience,” Simon Griffiths, president and chief executive officer of Camden National, said Tuesday.
Northway Financial President and CEO William Woordward said that deal will allow the institutions to “allocate capital” in more ways than they could alone, which “strategically positions us for future growth for years to come.”
Under the deal, unanimously approved by both companies’ boards, Northway shareholders will receive 0.83 shares of Camden National common stock for each outstanding share of Northway common stock. Camden National shareholders will own approximately 86 percent of the combined company, while Northway shareholders will own 14 percent.
The deal is valued at $86.6 million, according to Camden National.
Once the transaction is completed, a Northway director will join the boards of both Camden National and Camden National Bank. The merger is expected to be completed early next year, pending approval from regulators and Northway shareholders.
The combined company will have 74 branches across Maine and New Hampshire, $7 billion in assets, $5.1 billion in loans, $5.5 billion in deposits and $2 billion in “assets under administration,” which Camden National believes will leave the company “well-positioned” to grow.
“Together, we will be able to unlock meaningful growth opportunities and create additional capacity for further strategic technology investments to deliver an enhanced offering for customers,” Griffiths said.
