Bangor Savings Bank plans to acquire Damariscotta Bank & Trust in a $35 million transaction that would solidify Bangor Savings’ position as the largest bank chartered in Maine.

Bangor Bancorp, parent company of Bangor Savings, and Damariscotta Bankshares Inc., parent company of Damariscotta Bank & Trust Co., have jointly entered into an agreement to fold Damariscotta into Bangor Savings, the two banks said Tuesday. The deal has been approved by the boards of both banks and is subject to regulatory and shareholder approvals, they said.

Bangor Savings is Maine’s largest state-chartered bank with 52 Maine branches, five New Hampshire branches and total assets of $4.4 billion. Damariscotta has six branches, total deposits of $172.3 million and nearly $200 million in assets as of September, according to the Federal Deposit Insurance Corp. website. It has two branches in Damariscotta and one each in Belfast, New Harbor, Union and Warren.

The two banks said in a news release that the combined entity would retain the Bangor Savings name and would have more than 60 branches in Maine and New Hampshire, with total assets of $4.8 billion. The deal is expected to close in the second quarter of 2020, they said.

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