The parent company of Maine-based Northeast Bank Insurance Group has raised $16.2 million in new investment it says will be used to expand its insurance, banking and financial services divisions.
Northeast Bancorp says the group of investors will also purchase 40 percent of the outstanding shares of the company for approximately $12.9 million.
Jim Delamater, president and CEO of Northeast Bancorp said, “This level of capital represents a real investment in Northeast’s future that we believe will provide greater opportunities for our customers, our employees, our shareholders and our region in the years ahead.”
Richard Wayne, CEO of FHB Formations, the entity created to invest in the bank, said: “Northeast is a solid community bank with many options for growth. Our goal is to ensure that Northeast remains a vibrant, locally focused bank, and has the resources for future growth and success.”
Investors in FHB, which will be merged into Northeast and then dissolved, will own approximately 60 percent of the company.
The existing management team of Northeast will continue with the company: Jim Delamater will become president and CEO of Northeast’s Community Banking Division, Pender J. Lazenby will remain as the chief risk officer of Northeast, Robert S. Johnson will become chief financial officer of Northeast’s Community Banking Division and Marcel C. Blais will become chief operating officer of Northeast’s Community Banking Division. Northeast’s Board of Directors will comprise nine members, including representation from the existing Northeast board of directors.
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