Sandy Spring Bancorp has agreed to acquire Maryland-state chartered bank Revere Bank for $460.7m (£370.33m) in an all-stock deal.
Headquartered in Rockville, Revere Bank operates 11 banking offices across the suburban Maryland counties of Anne Arundel, Baltimore, Frederick, Montgomery Howard and Prince George’s. The community-based, full-service commercial bank held more than $2.6bn in assets, as of 30 June 2019.
Sandy Spring Bank is headquartered in Olney, Maryland. The community bank operates more than 50 locations across Maryland, Northern Virginia and Washington, D.C.
It provides a variety of commercial and retail banking, mortgage, private banking, and trust services, apart from insurance and wealth management services via its subsidiaries.
Sandy Spring said that the merger, which will result in combined assets of $11.2bn (£9bn), will deepen its footprint in its core market. Furthermore, the transaction also pushes the bank through a key growth benchmark of $10bn (£8.04bn).
Sandy Spring Bank president and CEO Daniel Schrider said: “Over the past two years we have significantly expanded our geographic footprint, delivered record annual earnings, marked our 150th anniversary, and continued to build out a strong team of local professionals and industry experts.
“This acquisition further solidifies Sandy Spring Bank as a premier bank in the Greater Washington region and the largest, locally-headquartered community bank. Our success is evidence that our highly personalised approach to client service works, and we are well positioned for continued growth.”
Terms of the merger between Sandy Spring and Revere Bank
As per the merger terms, Revere Bank’s shareholders will get 1.05 shares of Sandy Spring common stock for each share they hold. Post-merger, Sandy Spring’s shareholders will hold a stake of around 74% in the enlarged banking company, while Revere Bank’s shareholders will own the remaining stake of nearly 26%.
Revere Bank co-president and CEO Ken Cook said: “Partnering with Sandy Spring Bank reflects our long-term commitment to our community and our clients, and we look forward to joining the company.
“Our clients will truly benefit from the extensive products and sophisticated services that they will soon have access to throughout the Greater Washington region.”
Depending on shareholder and regulatory approvals, and other customary closing conditions, the merger deal is likely to be closed in the first quarter of 2020.
