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First National Bank to acquire former DB&T branch

The First expands into Waldo County
Sep 03, 2020

Belfast — First National Bank, a subsidiary of The First Bancorp Inc. (NASDAQ: FNLC), and Bangor Savings Bank, a subsidiary of Bangor Bancorp, MHC, jointly announced today that the two banks have signed a definitive agreement for First National Bank to purchase the Damariscotta Bank & Trust Co. branch in Renys Plaza.

As part of the transaction, First National Bank will acquire deposit accounts totaling approximately $16.5 million as of Aug. 31, as well as $23.5 million in loan balances.

The 1 Belmont Ave. DB&T branch in Belfast is one of six locations to be acquired by Bangor Savings Bank through its pending merger with Damariscotta Bankshares Inc., parent of Damariscotta Bank & Trust Co. Bangor Savings Bank's main Belfast branch, at 7 Belmont Ave., is situated across Renys Plaza from the DB&T location.

Bangor Savings and DB&T will work with First National "to ensure as seamless a transition as possible for the Belfast customers of DB&T," the banks said in their joint announcement. Customers of the existing Bangor Savings branches at 7 Belmont Ave. and 106 Main St. will not be impacted.

“We are excited to expand our branch network into the Belfast market,” Tony C. McKim, president and chief executive officer of First National Bank, said in the announcement. “The Belfast branch at 1 Belmont Avenue will provide an opportunity to serve a new customer base and enhance our ability to serve our existing customers in Waldo County. We intend to retain the existing employees at the branch, as they will make the transition as easy as possible for our new customers coming from DB&T. The transaction is expected to be immediately accretive to earnings.”

Bob Montgomery-Rice, president and chief executive officer of Bangor Savings Bank, said, “With the announcement of the sale of this location, we are hopeful that we will receive the remaining necessary regulatory approvals to complete the acquisition of DB&T. Our team will work closely with First National Bank in the conversion process to support employees, customers, and our community through the transition. We look forward to continuing to serve existing Bangor Savings Bank customers in Belfast.”

The final value of the transaction is estimated to be $24.8 million, according to the announcement. That figure includes the loans, an assignment of a ground lease, leasehold improvements, and furniture and equipment for the Belfast location, plus the premium paid for deposits. The transaction is subject to regulatory approval and is expected to close in the fourth quarter of 2020 after completion of the pending DB&T acquisition.

Over the next several weeks, First National and DB&T will be communicating directly with customers of the Belfast branch to guide them through the process and assist with any questions. Information on the transition will be regularly updated on First National’s website at TheFirst.com.

About The First Bancorp

The First Bancorp, the parent company of First National Bank, is based in Damariscotta. Founded in 1864, First National Bank is a full-service community bank with $2.2 billion in assets. The bank provides commercial and retail banking services through 16 locations in Midcoast and eastern Maine. First National Wealth Management, a division of the bank, provides investment management and trust services to individuals, businesses and municipalities.

About Bangor Bancorp, MHC

Bangor Savings Bank, with more than $5.4 billion in assets, offers retail banking to consumers as well as commercial, corporate, payroll administration, merchant services, and small business banking services to businesses. Founded in 1852, the bank is in its 168th year with 57 branches in Maine and New Hampshire and on the web at bangor.com.

Bangor Savings Bank Foundation was created in 1997. Together, the bank and its foundation invested more than $2.5 million into the community in the form of sponsorships, grants, and partnership initiatives last year.

 

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