Mascoma Mutual Financial Services Corporation, headquartered in Lebanon, New Hampshire, and Connecticut River Bancorp, Inc, headquartered in Charlestown, New Hampshire, (OTCQB:’ ‘CORB’), jointly announced today that they have entered into a definitive agreement for the merger of Connecticut River and its subsidiary, Connecticut River Bank, NA, with and into Mascoma’ and its subsidiary, Mascoma Savings Bank. Both have branches in Vermont. Under terms of the agreement, upon completion of the merger, each shareholder of Connecticut River’ will receive $18.15 per share in cash, giving the transaction a value of approximately $26.7 million. The agreement has been unanimously approved by the Boards of Directors of both Mascoma’ and Connecticut River. ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘
Mascoma currently operates 9 branches in New Hampshire in Grafton and Merrimack Counties as well as 9 branches in Vermont in Orange and Windsor Counties. Connecticut River currently operates 10 branches in New Hampshire in Cheshire, Grafton and Sullivan Counties as well as one branch in Vermont in Windsor County.’
‘We are pleased to welcome Connecticut River Bank customers and employees to Mascoma,’ said Stephen Christy, President & Chief Executive Officer of Mascoma. ‘The geographic footprints and the balance sheets of the two franchises fit well together. The merger of Connecticut River with Mascoma will expand our branch network north and south in New Hampshire and Vermont, from Lancaster and Littleton to Keene. Because we are a mutually owned, non-stock company we can focus on serving our three important constituents ‘ customers, communities, and employees. The partnering of these two banks will allow us to better serve the personal and business needs of customers with expanded financial resources and lending capacity, while maintaining a community banking approach to business. In short, together both organizations will be stronger.’’
Gary Gray, President & Chief Executive Officer of Connecticut River, echoed those sentiments by saying, ‘Mascoma is a strong and vibrant community bank that shares our customer service focus, and that has received awards for its culture and employee satisfaction.’ Gray went on to say, ‘Considering the current banking environment with increased regulatory constraints, income pressures and challenges that lie ahead, our Board believes we have found the right partnership with a larger community bank like Mascoma to provide the best value for our shareholders and the best future opportunities for our customers, and employees.’’ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘ ‘
The transaction is subject to approval by the shareholders of Connecticut River and the corporators of Mascoma, as well as customary regulatory approvals. Upon completion of the merger, one member of the Board of Directors of Connecticut River will join the Boards of Directors of Mascoma and Mascoma Savings Bank.’ The transaction is expected to close in the third calendar quarter of 2014.
Mascoma Mutual Financial Services Corporation, a federally chartered mutual holding company headquartered in Lebanon, New Hampshire, is the parent company of Mascoma Savings Bank, a federal savings bank with $1.1 billion in assets and over $106 million in capital. Through its 18 branch network in west central New Hampshire and east central Vermont, Mascoma Savings Bank provides a full range of personal and business banking products to individuals, businesses, not-for-profit organizations and government entities as well as insurance and wealth management services. For more information, please visit www.mascomabank.com.’
Connecticut River Bancorp, Inc. is headquartered in Charlestown, New Hampshire, and provides a variety of banking services to individuals and corporate businesses through its wholly-owned subsidiary Connecticut River Bank, NA, a commercial bank chartered in 1864. Connecticut River Bank, NA serves consumers and businesses along the Connecticut River Valley through its 11 branch network
Mascoma Mutual Financial Services Corporation was advised by Sterne, Agee & Leach, Inc. and its legal counsel was Luse Gorman Pomerenk & Schick, P.C. Connecticut River Bancorp, Inc. was advised by Griffin Financial Group, LLC and its legal counsel was Nutter McClennen & Fish LLP.
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Lebanon, NH, and Charlestown, NH, December 9, 2013 ‘ Mascoma Mutual Financial Services Corporation and Connecticut River Bancorp
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