Maine’s Northeast Bancorp Sells Its Insurance Group to 2 Local Agencies

August 31, 2011

Lewiston, Maine-based Northeast Bank Insurance Group has been acquired by local agencies in two separate transactions effective Sept. 1.

The Varney Agency, of Bangor, Maine, will purchase the assets of nine Northeast Bank insurance offices covering southern, central, and western Maine.

Related to the deal, Brad Scott, currently a member of the Northeast Bank Insurance Group’s senior management team, has acquired the assets of Spence and Mathews Insurance, which operates one insurance office in Berwick, Maine, and serves about 6,000 customers in Southern Maine and Seacoast New Hampshire.

The bank said that the total sale proceeds of $9.7 million will add approximately $8.4 million to its tangible equity.

Rick Wayne, president and CEO of Northeast Bancorp, parent of Northeast Bank Insurance Group, said the bank would continue to have a business relationship with both the Varney Agency and Spence and Mathews Insurance after the transaction closes. Northeast Bank will be referring customers with insurance needs to each of these agencies. In both transactions, existing Northeast Bank Insurance Group customer insurance policies, carriers, terms, and the majority of account service representatives will remain, according to the company.

Varney said the deal allows his agency to add offices in new parts of the state and gives it the talent of Northeast’s insurance employees.

Brad Scott, the new owner of Spence and Mathews, and a longtime Northeast Bank insurance manager, said he will continue operating out of the Berwick office. “This transaction enables us to acquire an excellent business, retain talented employees, continue in a great location, and maintain a strong relationship with Northeast Bank,” said Scott.

The Spence and Mathews Insurance Agency was founded in 1935 and sells home, auto, and business insurance in southern Maine and New Hampshire.

The Varney Agency has been serving Maine since 1980. After this transaction, it will have 22 full-service branch offices located throughout the state.

Northeast Bank has approximately $596 million in assets and operates 10 traditional bank branches, three investment centers and four loan production offices in Maine

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