Bar Harbor Bankshares subsidiary Bar Harbor Bank & Trust (BHBT) signed a definitive agreement to acquire eight branches located in central Maine from People’s United Bank.

The branches have approximately $287 million in deposits, $111 million in loans and $284 million in assets under management as of March 31, 2019.

Both banks will be working closely to ensure a seamless transition for customer accounts and associates transferring to BHBT. The company intends to offer continued employment to the professionals associated with People’s central Maine region.

The eight branches will increase BHBT’s total branch count to 56 in its total footprint and to 22 in Maine.

BHBT President and CEO Curtis C. Simard stated, “We are pleased to welcome our new colleagues, customers and communities to our already deep Maine roots. We look forward to servicing their banking and wealth management needs, and to providing our full suite of personal and commercial deposit and loan products. We believe this acquisition provides our existing and new customers enhanced convenience and underscores our commitment to Maine while expanding into contiguous markets in a sensible way. These branches stretch across the central Maine I-95 corridor with four branches in the greater Bangor market and includes all deposits from People’s central Maine territory.”

Simard added, “This transaction contributes to our financial and long-term strategic goals with manageable risk based on our experienced team’s history of successful acquisitions and system integrations. We plan to use the acquired deposits to replace certain existing higher cost of borrowings which will result in an immediate accretion to earnings and will support future growth with additional core funding. Incremental earnings will allow for an estimated earn-back of tangible book value per share less than a period of five years. At closing, the company will pay a 6.3% premium on average total deposits plus a premium of 1.2 times annualized wealth management revenue and approximately $4.4 million for the fair value of premises and equipment acquired.”

The transaction is expected to close in the fourth quarter of 2019, subject to regulatory approval from the Federal Deposit Insurance Corporation and the State of Maine and the satisfaction of customary closing conditions.

Griffin Financial Group served as financial advisor to Bar Harbor Bankshares, while K&L Gates served as outside legal counsel.

Founded in 1887, Bar Harbor Bank & Trust is a community bank which provides full-service community banking from office locations in three Northern New England states: Maine, New Hampshire and Vermont.