Camden National in Camden, Maine, has agreed to buy SBM Financial in Portland, Maine.

The $2.8 billion-asset Camden National said in a press release Monday that it will pay $135 million in cash and stock for the $800 million-asset parent of Bank of Maine. The deal is expected to close in the third quarter.

"The union of these two great organizations will redefine what it means to be a community bank," Gregory Dufour, Camden National's president and chief executive, said in the release. "This is a strong business combination that enhances our competitive market position and will allow us to realize efficiency benefits."

Camden said it expects to cut about 37% of Bank of Maine's pretax noninterest expenses. The transaction is expected to be accretive to Camden National's earnings per share starting next year.

RBC Capital Markets and Goodwin Procter advised Camden National. Keefe Bruyette & Woods and Luse Gorman advised Bank of Maine.

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