A Maine investment group has agreed to inject $60 million into Savings Bank of Maine in Gardiner as part of the thrift's recapitalization plan, the companies announced last week.
On March 12 the $929 million-asset savings bank received a prompt-corrective-action directive from the Federal Deposit Insurance Corp. ordering it to become adequately capitalized by June 30, sell itself or merge with another institution. The $60 million investment from SMB Financial will boost the thrift's capital ratios above the required levels, the company said. Under the recapitalization plan, SMB also will absorb the thrift's two holding companies, restructure its debt and acquire all of its common stock.
SMB Financial, also based in Gardiner and led by a group of local investors, is replacing several Savings Bank of Maine executives.