Telemark banks merge, forming regional powerhouse Telemark Sparebank

Sparebanken DIN Telemark and Drangedal Sparebank have signed a letter of intent to merge, establishing Telemark Sparebank. The combined entity will boast total business capital of approximately NOK 17.3 bn and total loans of around NOK 15.1 bn. This strategic move aims to enhance competitiveness, increase lending capacity, and strengthen local community support.

Drangedal Sparebank will be the legally and accounting-wise acquiring bank, issuing equity certificates and cash as consideration. Kjell Nærum, current chief executive of Drangedal Sparebank, will lead the new bank as chief executive, with Silje Bakken as deputy chief executive and chief financial officer. The merged bank will retain all 88 employees across 8 offices, with the main office located in Bø.

The merger process is expected to culminate in official approval in Q2 2026, following board and regulatory approvals. The new bank targets a robust capital structure and enhanced liquidity reserves for its associated savings foundations, which will distribute gifts for public benefit purposes.