Bank of America Selling Branches Quickly
By: Leon Castles
on Wednesday, April 25, 2012
The Charlotte based Bank of America is now working on the reshuffling of the services they have and just few weeks ago CEO of Bank of America, Brian Moynihan said that they will be selling of many of their branches and even offshore investments. Bank of America has now announced that they have planned to sell off 15 of their Maine branches to Camden National Bank. Camden National Bank is a local community lender in Maine and the company made the announcement in a securities filing through Camden National Corp which is the parent company of the bank.
The company said that Bank of America will be selling off 15 branches in Maine for $414 million in deposits and $14 million in small business loans to Camden. On the other hand, Camden will pay 3.7% premium on the deposits or about $15.3 million to the Bank of America in return. Currently, Camden National Bank is on the fifth place in terms of state deposits but after the deal it takes the third spot as it will have 9% of the statewide deposits. Bank of America will be selling off branches that are located in Auburn, Augusta, Bangor, Brewer, Gardiner, Lewiston, Newport, Old town, Orono, Rockland and Waterville.
After this deal, Bank of America will slip down to the sixth place in the market share as now they only have 21 branches operating in Maine. Bank of America plans to cut down and sell off more than 750 branches across North America to focus on large metropolitan areas.