EASTON, Md. and WARREN, Pa., Jan. 10,
2017 /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ:
SHBI) announced today 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, the bank subsidiary of Northwest Bancshares, Inc.
(NASDAQ: NWBI). 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."
William J. Wagner, Chairman,
President and CEO of Northwest Bank stated "Northwest is pleased to
have the opportunity to transfer these branches to Shore, given its
long-standing tradition of success as a Maryland-based community bank. We
believe the employees and customers of these offices will embrace
the products, services and culture of Shore, which are remarkably
similar to Northwest. After thoroughly vetting the merits of
this potential divestiture, we concluded that the transaction with
Shore presented a reasonable financial return, while providing
significant opportunities for our company to devote additional
resources to the markets in Pennsylvania, New
York and Ohio where we have
a more significant presence and greater opportunities for
success."
Subject to customary closing conditions, including the receipt
of all necessary regulatory approvals, the acquisition is expected
to be completed during the second quarter of 2017. Customers
of the acquired branches will receive detailed information
regarding the transfer of their accounts in the next few
months.
Monocacy Financial Advisors, LLC is serving as financial advisor
to Shore United Bank and Holland
& Knight LLP is serving as legal advisor. Sandler O'Neill
+ Partners, LLP is serving as financial advisor to Northwest Bank
and Luse Gorman, PC is serving as
legal advisor.
About Shore Bancshares, Inc.
Shore Bancshares, Inc. is a financial holding company
headquartered in Easton, Maryland
and is the largest independent bank holding company located on
Maryland's Eastern Shore. It
is the parent company of Shore United Bank; one retail insurance
producer firm, The Avon-Dixon Agency, LLC ("Avon-Dixon"),
with two specialty lines, Elliott Wilson Insurance (Trucking) and
Jack Martin Associates (Marine); and an insurance premium finance
company, Mubell Finance, LLC ("Mubell"). Shore Bancshares
Inc. engages in trust and wealth management services through Wye
Financial & Trust, a division of Shore United Bank.
Additional information is available
at www.shorebancshares.com.
About Northwest Bancshares, Inc.
Headquartered in Warren,
Pennsylvania, Northwest Bancshares, Inc. is the holding
company of Northwest Bank. Founded in 1896, Northwest Bank is
a full-service financial institution offering a complete line of
business and personal banking products, employee benefits and
wealth management services, as well as the fulfillment of business
and personal insurance needs. Northwest operates 167
full-service community banking offices and nine free-standing
drive-up facilities in Pennsylvania, New
York, Ohio and Maryland and 49 consumer finance offices in
Pennsylvania through its
subsidiary, Northwest Consumer Discount Company. Northwest
Bancshares, Inc.'s common stock is listed on the NASDAQ Global
Select Market ("NWBI"). Additionally, information regarding
Northwest Bancshares, Inc. and Northwest Bank can be accessed
on-line at www.northwest.com.
Forward-Looking Statements
The statements contained herein that are not historical facts
are forward-looking statements (as defined by the Private
Securities Litigation Reform Act of 1995) based on current
expectations and beliefs concerning future developments and their
potential effects on the respective companies. Such statements
involve inherent risks and uncertainties, many of which are
difficult to predict and are generally beyond the control of the
respective companies. There can be no assurance that future
developments affecting the respective companies will be the same as
those anticipated by management. These statements are
evidenced by terms such as "anticipate," "estimate," "should,"
"expect," "believe," "intend," and similar expressions.
Although these statements reflect the Companies' good faith
beliefs and projections, they are not guarantees of future
performance and they may not prove true. These projections
involve risk and uncertainties that could cause actual results to
differ materially from those addressed in the forward-looking
statements. Readers should not place under reliance on such
forward-looking statements, which speak only as of the date
made. For a discussion of these risks and uncertainties, see
the section of the periodic reports filed by Shore Bancshares, Inc.
and Northwest Bancshares, Inc., respectively, with the Securities
and Exchange Commission entitled "Risk Factors".
Each of the Companies specifically disclaims any obligation to
update any factors or to publicly announce the result of revisions
to any of the forward-looking statements included herein to reflect
future events or developments.
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SOURCE Northwest Bancshares, Inc.