BNH Financial in Laconia, N.H., has agreed to buy Community Guaranty in Plymouth, N.H.
BNH, the parent of the $1.2 billion-asset Bank of New Hampshire, said in a press release Monday that it will pay about $12.9 million, or $65.10 a share, in cash for the holding company for the $115 million-asset Community Guaranty Savings Bank. The price represents a 157% premium to Community Guaranty's tangible book value at Sept. 30. The companies expect the deal to close in May.
Community Guaranty's chairman, Ronald Sibley, and chief executive, Michael Long, will join Bank of New Hampshire's board and become trustees of BNH Financial.
BNH's last acquisition was in 2005 when it bought Village Bank & Trust in Gilford, N.H. The company has 23 branches in New Hampshire, with plans to open a new office in Portsmouth, N.H., next spring.
Community Guaranty was founded in 1988; it has two branches in Plymouth and Campton, N.H.
Sandler O'Neill and Nutter McClennen & Fish advised BNH. FIG Partners and Cranmore, FitzGerald & Meaney advised Community Guaranty.