Savings Bank to acquire Kennebec bank

    GARDINER and KENNEBUNK — 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 Dec. 31, 2007, the bank currently serves markets in Central, Mid-Coast, Northern, and Down East 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 Down East,” 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 Dec. 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.  
     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.
    Additional information about either bank may be found on their respective websites, www.savingsbankofmaine.com or www.rivergreenbank.com.