For Immediate Release
SAVINGS BANK OF MAINE TO ACQUIRE RIVERGREEN BANK
Expands Maine based, community focused banking from York to Fort Kent
GARDINER and KENNEBUNK, Maine, April 24, 2008 - Savings Bank of Maine, an independent bank headquartered in Gardiner, and Rivergreen Bank, headquartered in Kennebunk, today announced they have reached a definitive agreement for Savings Bank of Maine to acquire Rivergreen Bank in an all-cash merger transaction valued at approximately $13.1 million. The transaction is expected to close in the fourth quarter of 2008 and will create a bank with over $1 billion in assets and a footprint stretching from York to Fort Kent.
Established in 1834, Savings Bank of Maine is the second-oldest savings bank in the state. With assets totaling over $938 million at December 31, 2007, the bank currently serves markets in Central, Mid-Coast, Northern, and Downeast Maine.
"Partnering with Rivergreen Bank is an exceptional opportunity for our Bank to expand our presence to Southern Maine, an important new market area for us," said Arthur C. Markos, President and Chief Executive Officer of Savings Bank of Maine. "Our focus as a community-oriented bank parallels Rivergreen Bank's philosophy, and we intend to maintain, and hopefully enhance, that commitment to the communities and customers that Rivergreen Bank serves. We are very pleased to be teaming up with a board and group of employees who have developed an excellent and respected financial institution in the six years since its founding."
"This expansion significantly increases the Bank's footprint as we will serve a market area that stretches from York to Fort Kent and Downeast," said Markos. "Technology makes that possible for us. Ironically that same technology, with its increased dedication to security and regulatory compliance, is leading small banks like ours to join together to compete with the tax-exempt credit unions and mega-banks."
Rivergreen Bank, headquartered in Kennebunk, was organized in 2002. As of December 31, 2007, Rivergreen Bank had total assets of $107.6 million and shareholders' equity of $6.0 million. Specializing in serving customers in Southern Maine, Rivergreen Bank operates offices in Kennebunk, York and Saco.
Rivergreen Bank's President and Chief Executive Officer, Noel B. Graydon, said, "The breadth of Savings Bank of Maine's product offerings will allow us to maintain, expand and enhance services and products that should be very attractive to our business and retail customers alike. Our combined asset size will also allow us to accommodate businesses with greatly expanded loan limits. This transaction will allow us to strengthen independent Maine based banking in the communities we serve."
James M. Faulkner, Rivergreen Bank's Chairman of the Board, added, "In making this decision, our board placed a great deal of value on Savings Bank of Maine's culture. We believe Savings Bank of Maine truly embraces community banking and will bring a continued dedication to our customers and communities."
The definitive merger agreement has been approved by the respective boards of directors of Rivergreen Bank and Savings Bank of Maine. It is subject to approval by regulatory authorities and by Rivergreen Bank's stockholders. Under the terms of the merger agreement, Rivergreen Bank stockholders will be entitled to receive $16.72 in cash for each share of Rivergreen Bank common stock. In addition, holders of Rivergreen Bank preferred stock will be entitled to receive $16.72 in cash for each share of preferred stock.
RP Financial, LC served as financial advisor to Savings Bank of Maine and Sandler O'Neill & Partners, L.P. served as financial advisor to Rivergreen Bank. Luse Gorman Pomerenk & Schick, PC served as legal advisor to Savings Bank of Maine and Tuggle Duggins & Meschan, P.A. and Bernstein, Shur, Sawyer & Nelson, P.A. served as legal advisor to Rivergreen Bank.
Additional information about either bank may be found on their respective websites, www.savingsbankofmaine.com or www.rivergreenbank.com.
For More Information:
Savings Bank of Maine
Susan Grove-Markwood
207-768-3222 x101 (O)
207-227-8175 (cell)
Rivergreen Bank
Stephanie Conzelman
207-985-9222 x137 (O)
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