Camden National Bank’s bank holding company Camden National has agreed to acquire Northway Financial in an all-stock deal valued at around $86.6m.
Based in the US, Northway Financial is a bank holding company that owns Northway Bank.
The company delivers a wide array of financial products and services through Northway Bank to individuals, businesses, and the public sector from its 17 branches and loan production offices.
Under the terms of the definitive agreement, shareholders of Northway Financial will receive 0.83 shares of Camden National common stock for each outstanding share of Northway Financial common stock.
The consideration is valued at about $31.46 per share of Northway Financial common stock.
Northway Financial CEO and president William Woodward said: “Combined, we strengthen our foundations of a forward-thinking approach to community banking while best serving clients with whom we have built strong relationships over the years.
“With shared histories and community commitment, this alliance doesn’t just extend our influence; it drives significant operational enhancements and strategically positions us for future growth for years to come.”
By bringing together two high-quality and culturally aligned franchises with adjacent geographies, the proposed merger is expected to establish a premier publicly-traded northern New England bank.
The enlarged entity will have 74 branches across a contiguous footprint in New Hampshire and Maine. It will have nearly $7bn in assets, $5.1bn in loans, $5.5bn in deposits, and $2bn of assets under administration (AUA).
Besides, the merger is expected to boost Camden National’s earnings per share by around 19.9% in 2025 and 32.7% in 2026.
Camden National CEO and president Simon Griffiths said: “Camden National and Northway share a similar culture, consistent credit and risk profiles, and deep commitment to the communities we serve.
“This union will increase our size and scale, and bolster our presence in New Hampshire, which we believe will drive profitability and shareholder value. Our customers, employees, and communities will significantly benefit from broader product offerings, higher lending limits, and an enhanced customer experience.”
Established in 1875, Camden National Bank is a full-service community bank with 57 branches in Maine and New Hampshire. It is said to offer the latest digital banking, complemented by personalised service.
Following the closing of the proposed merger, Camden National shareholders will hold about 86% of the combined company while Northway Financial’s shareholders will own approximately 14% of the combined company.
The new entity will operate under the Camden National Bank name.
Subject to certain customary conditions, including the receipt of required regulatory approvals and approval by Northway Financial shareholders, the transaction is anticipated to be completed during Q1 2025.
The merger has been unanimously approved by the boards of both companies.
For the transaction, Raymond James & Associates served as the exclusive financial adviser and rendered a fairness opinion to Camden National’s board of directors, while Sullivan & Cromwell was the legal counsel.
Performance Trust Capital Partners was the exclusive financial adviser to Northway Financial and provided a fairness opinion to its board of directors. Goodwin Procter served as legal counsel to Northway Financial.
