In a deal that would extend its presence deeper into central Maine, Camden National Corp. said it would buy KSB Bancorp of Kingsfield, Maine, for $28 million of stock.

Camden, based in the Maine coastal town, has $685 million of assets and is parent of two banks. KSB, with $179 million of assets, is the holding company for Kingsfield Savings Bank, which has nine branches in three central Maine counties.

The deal is valued at two times KSB's book value and 14.7 times its earnings. Terms call for Kingsfield to be merged into Camden National's Bangor-based United Bank subsidiary, creating a $300 million-asset bank with 18 branches. The deal is expected to close early in 2000.

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