New Hampshire Thrift Bancshares (NHTB) has made its first bank deal in nearly five years, agreeing to buy Nashua Bank for roughly $19.4 million.
The cash-and-stock deal would give New Hampshire Thrift, of Newport, an additional branch in its home state. The $117 million-asset Nashua would keep its name and operate as a division of New Hampshire Thrift's bank, Lake Sunapee Bank.
New Hampshire Thrift currently has 19 branches in its New Hampshire and eight in Vermont. The $1.1 billion-asset Lake Sunapee's last bank acquisition was in October 2007 when it acquired First Community Bank in Woodstock, Vt. It entered the insurance business last fall when it purchased McCrillis and Eldredge Insurance, an independent commercial and consumer agency in Newport.
Nashua shareholders would receive $14.50 in cash or 1.136 shares of New Hampshire Thrift common stock for each Nashua common stock they own, or a combination of cash and stock. Eighty percent of Nashua Bank shares will be exchanged for stock and 20% for cash.
G. Frank Teas, who is currently president and chief executive of Nashua, would become a senior vice president of commercial lending for the southern region of Lake Sunapee. Two members of Nashua's board would join the boards for New Hampshire Thrift and Lake Sunapee. They would serve until the third anniversary of the merger. The remaining Nashua board members would be asked to serve as members of an advisory board for at least three years following the deal.
New Hampshire Thrift was advised by Sterne, Agee & Leach, and its legal counsel was Hogan Lovells US. Nashua was advised by Keefe, Bruyette & Woods, and its legal counsel was Hinckley, Allen & Snyder.
The deal, announced Wednesday, is expected to close in the fourth quarter.