Bar Harbor Bankshares is acquiring a New Hampshire bank in a $143 million deal that will make it the only New England-based community bank with operations in Maine, New Hampshire and Vermont.

Bar Harbor announced Thursday in a news release that it is acquiring Lake Sunapee Bank Group, a publicly traded bank in Newport, New Hampshire, with $1.6 billion in assets. At closing, the combined institution is expected to have approximately $3.3 billion in assets, $2.4 billion in net loans, $2.2 billion in deposits and over $2.0 billion in assets under management.

“We are excited to welcome Lake Sunapee customers, employees and their 35 franchise locations to the Bar Harbor family,” said Curtis Simard, president and chief executive officer of Bar Harbor, in the release. “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.”

The banks, both founded in the late 1800s, intend to continue operating their 50 branches under their respective banners.

The deal would push Bar Harbor into the ranks of Maine’s largest community banks. Camden National Bank reported assets of $3.7 billion as of April 26 and Bangor Savings Bank reported assets of $3.29 billion on Dec. 31, 2015.

Under the terms of the agreement, each outstanding share of Lake Sunapee common stock, which trades on the Nasdaq as LSBG, will be exchanged for 0.4970 shares of Bar Harbor common stock, which trades on the New York Stock Exchange as BHB. Upon closing, Bar Harbor shareholders will own approximately 59 percent of the combined company’s stock, while Lake Sunapee shareholders will own roughly 41 percent.

The deal must still receive state and federal regulatory approval, but has been endorsed by Bar Harbor and Lake Sunapee’s boards of directors. Managers expect the deal will be closed by the end of 2016, or in the first quarter of 2017.

The transaction is intended to qualify as a reorganization for federal income tax purposes, and as a result, the shares of Lake Sunapee common stock exchanged for shares of Bar Harbor common stock are expected to be transferred on a tax-free basis, according to the release.

Copy the Story Link