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Annapolis Based Severn Bank Acquired by Shore United Bank

| March 03, 2021, 06:53 PM

Severn BankShortly after the markets closed this evening, Severn Bank announced that they have entered into a merger agreement with Shore United Bank and will be absorbed and create the third largest bank headquartered in Maryland. Combined, there will be 29 branches representing $2.3 billion in deposits.

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The deal is a stock and cash transaction valued at approximately $146 million (including common stock and stock options), or $11.30 per share of Severn common stock, based on a closing price for Shore’s common stock of $15.64 as of March 2, 2021 and $1.59 per share in cash. Shore expects the transaction to be over 30% accretive to EPS in 2022, based on anticipated cost savings of approximately 35%.

Severn is headquartered in Annapolis, Maryland with $952.6 million in total assets, $679.2 million in gross loans and $806.5 million in total deposits as of December 31, 2020.

Lloyd L. “Scott” Beatty, President and Chief Executive Officer of Shore, commented, “The addition of Severn to our organization is very exciting. We will now have a presence in Anne Arundel County which is a wonderful market and fills in a gap in our footprint. The merger also brings new products and talent to our organization.”

“It is an opportunity for Severn to join forces with a larger organization and remain committed to community banking,” said Alan Hyatt, President and Chief Executive Officer of Severn. “We look forward to the opportunities and benefits this combination will bring to our shareholders, in terms of prospects for future earnings growth, immediate dividend pick-up and diversification, as well as to clients, employees and the many communities we serve.”

The deal was unanimously approved by the Board of Directors of both companies.

The transaction is expected to close in the third quarter of 2021, subject to satisfaction of customary closing conditions, including regulatory approvals and shareholder approval from Shore and Severn shareholders.

Severn Bank

Category: Businesses, LIFE IN THE AREA, Local News, NEWS, Post To FB

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