Bar Harbor Bankshares has agreed to acquire Lake Sunapee Bank Group in an all-stock deal worth about $143m.
The integration of the two banks will create the only community bank based in New England with a footprint in all three Northern New England states including Maine, New Hampshire as well as Vermont.
The merged entity will manage nearly $3.3bn in assets, $2.4bn in net loans, $2.2bn in deposits, and more than $2bn in assets.
Shareholders of Bar Harbor will own a stake of about 59% in the merged company’s stock, while Lake Sunapee shareholders will own nearly 41%.
Bar Harbor will add four Lake Sunapee directors, including Lake Sunapee president and CEO Stephen Theroux, to its board of directors following the acquisition.
The transaction is expected to close in the fourth quarter of 2016 or first quarter of 2017, subject to shareholders and regulatory approvals.
Bar Harbor president and CEO Curtis Simard said: "We believe together, with our increased scale, expanded geographic footprint and investments in technology, we are well positioned to serve the marketplace and continue to be the bank of choice. Lake Sunapee’s history of strong asset quality and profitability demonstrates to us a culture similar to our own and positions us for further success."
Lake Sunapee comprises 35 branches in New Hampshire and Vermont, and manages $1.2bn in net loans and $1.1bn in deposits as of 31 March 2016.