Camden National in Camden, Maine, has agreed to buy Northway Financial in North Conway, N.H.
The $5.7 billion-asset Camden National said in a press release that it will pay $86.6 million in stock for the parent of the $1.3 billion-asset Northway Bank. The deal, which is expected to close in the first quarter, priced Northway at 139% of its tangible book value.
“This union will increase our size and scale, and bolster our presence in New Hampshire, which we believe will drive profitability and shareholder value,” Simon Griffiths, Camden National’s president and CEO, said in the release. The merger will “provide the opportunity to leverage our significant technology investments and advice capabilities across an expanded customer base.”
One Northway director will join Camden’s board.
The deal is expected to be 19.9% accretive to Camden National’s 2025 earnings per share and 32.7% accretive the next year.
Camden National expects to incur $13.9 million of merger-related expenses. It plans to cut about 35% of Northway’s annual noninterest expenses.
Raymond James & Associates and Sullivan & Cromwell advised Camden National. Performance Trust Capital Partners and Goodwin Procter advised Northway.