Savings Bank of Maine, which was operating under a Cease and Desist Order from the Federal Office of Thrift Supervision (OTS) because of undercapitalization, has agreed to be recapitalized by SBM Financial, a Gardiner-based company owned by investors.

The Savings Bank of Maine has 32 branches and $929.1m in total assets.

Under the terms of the recapitalization, SBM Financial absorbed the bank’s two existing holding companies, restructured its debt, acquired all of its common stock, and raised $60m of new funds for the bank, which exceeds the capitalization requirements established by OTS.

SBM Financial is also complementing the bank’s existing management and employees with a new senior management team and board of directors, many with deep Maine roots. John Everets, the former CEO of GE/HPSC who led the investment group, will serve as chairman and CEO. Joining him as president is Willard Soper, former senior vice president of Shawmut Bank and CEO of Kislak Bank and Kislak Mortgage.

In addition to Mr Everets and Mr Soper the new board of directors will include David Ott, former chief banking officer of Banknorth; Richard Field, co-founder of Lending Tree and former executive vice president at Bank of New York and chairman of MasterCard International; James Ozanne, formerly Executive vice president of GE Capital and chairman and CEO of Nation’s Financial; Ronald Roark, founder, vice chairman and CEO of Crown Northcorp, and Robert Gardiner, president of Brunswick-based Independence Wind and former President of Maine Public Broadcasting.

Mr Everets said: “Our customers will see all the familiar faces at their local offices, as well as have an opportunity to meet some of our new team members. In addition to meeting and beginning to get to know one another, now that we have restored the bank to financial health we plan to start the process of building on the bank’s 176-year tradition of customer-oriented service.

“We are excited to be working with existing management and employees to build on this legacy, listening to our customers, growing and strengthening the services they value, and putting the bank on a path to its next 176 years of serving the people and businesses of Maine.”