By Carol Coultas,Business Writer

LEWISTON – The trust and investment division of Androscoggin Bank expects to double its managed assets and staff with the purchase of a long-standing Portland investment firm.

The bank expects to finalize the purchase of Head and Associates in early March, converting it to a wholly owned subsidiary. The move increases the bank’s trust and investment staff from eight to 18, and brings almost $500 million in new assets under the bank’s management.

“From the clients’ perspective, the advantage is we’re increasing the professional staff and gaining depth and expertise,” said L. Gary Knight, executive vice president of investment management and trust services.

Donald Head, president of the investment company, will lead the new subsidiary. It will operate from Head and Associates offices at 121 Middle St., Portland.

Knight said the move benefits both businesses. Head and Associates specializes in portfolio management, while Androscoggin Bank has the strength of a well-qualified and experienced trust staff.

By combining the two, clients of the bank and the investment company get the advantages of each other’s expertise.

“I think it’s an exciting opportunity for our clients throughout the Lewiston-Auburn area and the greater footprint we serve,” said Knight.

The deal must get regulatory approval from the Federal Depositors Insurance Corp., the state bureau of financial services and the Securities and Exchange Commission, but Knight said he doesn’t anticipate any problems. He declined to reveal the purchase price.

If the sale is approved, the bank’s managed portfolio will increase from $320 million to slightly more than $800 million.

“Our investment clients have growing needs and we’ll be better postured to assist them,” said Knight. “We’re pretty excited.”

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