Sparebank 1 Østlandet and Totens Sparebank – E24 will be combined

The banks say all employees want to continue after the merger.

The issue is updated.

The boards of directors of the two banks have concluded an agreement of intent to merge.

“The merger will contribute to joint investment at home,” the banks wrote in one of them. Stock exchange announcement.

-We are proud to be able to create a bigger and better bank headquartered in Inlandt. We are confident that the merger will benefit Totens Sparebank, whether employees, customers, shareholders and local communities, says Geir Stenseth, Chairman of the Board of Directors of Totens Sparebank.

In the report, the banks write that it is becoming “increasingly more demanding to be a medium-sized Norwegian bank”, and note that increased government requirements in many areas mean that more resources will be needed in the future.

Much larger

Sparebank 1 Østlandet is much larger than Totens Sparebank.

Before the planned merger, Toten Sparebank had loans worth $23 billion, and Sparebank 1 Østlandet had loans worth $197 billion.

Sparebank 1 Østlandet had book equity of NOK 18.9 billion at the end of the third quarter of last year. Totens Sparebank had 2.5 billion at the same time.

The total cash consideration for shares in Totens Sparebank was calculated at NOK 98.4 million.

The total merger amount corresponds to an exchange ratio of 87.52 percent to Sparebank 1 Østlandet and 12.48 percent to Totens Sparebank.

You want to include all employees more

According to the report, the two largest banks in Inland are the ones merging.

Sparebank 1 Østlandet has operations in Inlandet, Oslo and Akershus. The bank has 1,150 employees and 37 locations.

Totens Sparebank is currently located in Lena, Raufoss, Gjøvik, Hamar and Råholt. The bank employs about 90 employees.

– We welcome all Totens Sparebank employees. There is a need for everyone and they will be able to work from their current workplace as well after the merger is completed, says Richard Heiberg, CEO of Sparebank 1 Østlandet.

Managing Director Rolf Delingsrud at Totens Sparebank joins the group's management and is charged with responsibility for the integration of the banks. Other members of Totens Sparebank's management will be given central positions in the combined bank.

Richard Heiberg will retire on April 1. Clara-Lise Aasen then takes over the position of CEO of Sparebank 1 Østlandet.

Requires approval

The banks plan to final approve the merger on February 22.

After the merger is approved, approval will be sought from the authorities.

According to the initial phased plan, they will then be legally merged during the third quarter of 2024, while they will first have joint online banking and the like during 2025.

The combined bank will become part of the Sparebank 1 alliance, of which Sparebank 1 Østlandet is a part today.

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