PATTEN — Katahdin Trust Co. is buying eight branch offices of Peoples Heritage Bank in Aroostook County, according to officials from both banks.
The branch offices are located in Mars Hill, Easton, Fort Fairfield, Limestone, Washburn, Ashland, Van Buren and Eagle Lake.
Pending regulatory approval, the purchase is expected to be completed by the end of the year. Katahdin Trust Co. will assume responsibility for the servicing of all deposit (personal, business and municipal) and consumer loan accounts.
The acquisition will double the number of Katahdin Trust Co. offices in northern Maine and increase deposits by about $100 million.
Representatives of both banks stressed that customers would not need to take any action regarding their accounts, and that the transfer of servicing would be automatic.
“We’re very excited to expand our presence in Aroostook County,” said Jon J. Prescott, president and CEO of Katahdin Trust. “We’ve served northern Maine for over 80 years and we look forward to increasing our market area and having the opportunity to serve the residents of these communities.”
Prescott said all Peoples employees in the eight branches would have the opportunity to join Katahdin Trust Company and that additional staff likely would be hired to handle the increased activity resulting from the purchase.
“In assessing our decision to sell these branches, we felt that Katahdin Trust Company with its roots deep in northern Maine would be a perfect fit for these markets,” said Michael McNamara, president and CEO of Peoples Heritage Bank.
McNamara also said Peoples would maintain its commitment to customers in Aroostook County with a continued presence in Fort Kent, Caribou, Presque Isle and Houlton. Katahdin Trust Company will have 14 offices in northern Maine from Patten to Van Buren with a deposit base of about $215 million and total assets of nearly $250 million.
Banknorth Group Inc., formerly known as Peoples Heritage Financial Group, is an $18.4 billion bank holding company that is the parent company of Peoples Heritage Bank in Maine, Bank of New Hampshire, First Massachusetts Bank, GBT in Connecticut, Evergreen Bank in upstate New York, and Franklin Lamoille Bank, Howard Bank, First Vermont Bank, and The Group, all of Vermont.