Shore United Bank expands Maryland operations

EASTON, Md. (Reuters): Shore Bancshares, Inc. announced that its banking subsidiary, Shore United Bank, has entered into a purchase and assumption agreement to acquire three bank branches located in the greater Baltimore, Maryland metropolitan area with approximately $214 million in deposits, $152 million of performing loans and $40 million of cash from Northwest Bank.  This acquisition provides Shore United Bank with the opportunity to enhance its footprint in Maryland by extending its branch network across the Eastern Shore to the greater Baltimore area communities of Elkridge, Owings Mills and Arbutus. The premium to be paid on the deposits to be transferred is 8.0%. Excluding estimated transaction expenses, the transaction is currently anticipated to generate additional pre-tax income of approximately $1.7 million and $2.5 million in 2017 and 2018, respectively. Upon completion of the transaction, Shore Bancshares, Inc. is expected to have approximately $1.35 billion in total assets.

Both banks are working closely together to ensure a seamless transition for the customers and employees. Shore United Bank plans to retain all employees at these branch locations.

 “We are excited to announce this transaction and look forward to having our new customers and employees join the Shore United team,” noted Shore Bancshares’ President and Chief Executive Officer, Lloyd L. “Scott” Beatty, Jr. “These branches are a natural extension of our Eastern Shore base of operations and the transaction reflects our announced intention to expand our footprint through accretive acquisition opportunities. The acquisition will provide us with the liquidity to support future growth as well as a significant amount of performing loans, both of which will strengthen our franchise value.” Pat Bilbrough, Shore United Bank’s President and Chief Executive Officer, added “we believe our new customers will be pleased with our personalized approach to banking, our competitive banking products and services and our commitment to our people and our communities.”

Published in TheNation, January 22nd, 2017