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Shore (SHBI), Community Financial (TCFC) Get Nod for Merger
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Shore Bancshares, Inc. (SHBI - Free Report) and The Community Financial Corporation have received the required regulatory approvals from the Office of the Comptroller of the Currency and the Maryland Office of the Commissioner of Financial Regulation for their previously announced merger deal.
Also, the board of governors of the Federal Reserve System granted Shore and TCFC a waiver of its merger application requirements.
The consummation of the merger remains subject to the approval of SHBI and TCFC’s shareholders and the satisfaction of other closing conditions.
In December 2022, Shore, the holding company of Shore United Bank, N.A., announced an all-stock merger deal worth $254.4 million or $44.71 per share with Community Financial, wherein TCFC would merge with and into SHBI.
The closing of the deal is expected on or about Jul 1, 2023.
At the time of the deal announcement, it was projected that the merger would be more than 40% accretive to Shore’s earnings per share in 2024. The combined company is expected to have $6 billion in total assets on a pro forma.
The holders of TCFC common stock have the right to receive 2.3287 shares of SHBI common stock. The existing Shore shareholders will own 60% of the outstanding shares of the combined company and TCFC shareholders will own the remaining 40%.
Once the merger is complete, the combined company will trade under the Shore Bancshares name, with its administrative headquarters located in Easton, MD.
The combined company will operate a desirable, contiguous footprint throughout the Delmarva Peninsula, Southern Maryland, the Greater Baltimore-Washington area and Central Virginia, with plans to expand into attractive neighboring counties such as Prince George's County, MD.
At the time of the deal announcement, Lloyd L. "Scott" Beatty, the president and CEO of Shore, stated, “This combination creates a solid and very promising future for the combined organization. We are bringing together two well-known financial services brands that focus on providing remarkable client experiences, helping individuals and businesses reach their financial goals. The combined bank will remain committed to our employees and the relationships that they have developed over decades of serving our communities.”
James M. Burke, the president and CEO of TCFC, said, “Shore and TCFC are both community-focused organizations, with similar cultures and visions for the future. Our combined size and resources will significantly enhance our scale and ability to help customers through higher loan limits, greater investment in technology and increased career opportunities for employees. This will allow the combined bank to continue to deepen its presence in our core markets and will also allow us to expand more effectively in the markets that we wish to serve.”
Over the past six months, shares of Shore have lost 9.1%, while TCFC has gained 11.4%. This compares with their industry’s decline of 4%.
Last month, LPL Financial (LPLA - Free Report) announced that it closed the acquisition of the Private Client Group business of Boenning & Scattergood, a broker/dealer and registered investment adviser headquartered in West Conshohocken, PA.
As a result of the transaction, $4 billion of client assets are expected to onboard to LPLA’s custodial platform.
Rich Steinmeier, LPL Financial’s managing director and divisional president, said, “This is an exciting day for us, and we are proud to welcome the distinguished Boenning & Scattergood team to the LPL family. Boenning & Scattergood has a long history of helping its clients build their financial legacies. That aligns perfectly with our goal to provide the technology and support our advisors need to deliver the best client experience possible.”
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Shore (SHBI), Community Financial (TCFC) Get Nod for Merger
Shore Bancshares, Inc. (SHBI - Free Report) and The Community Financial Corporation have received the required regulatory approvals from the Office of the Comptroller of the Currency and the Maryland Office of the Commissioner of Financial Regulation for their previously announced merger deal.
Also, the board of governors of the Federal Reserve System granted Shore and TCFC a waiver of its merger application requirements.
The consummation of the merger remains subject to the approval of SHBI and TCFC’s shareholders and the satisfaction of other closing conditions.
In December 2022, Shore, the holding company of Shore United Bank, N.A., announced an all-stock merger deal worth $254.4 million or $44.71 per share with Community Financial, wherein TCFC would merge with and into SHBI.
The closing of the deal is expected on or about Jul 1, 2023.
At the time of the deal announcement, it was projected that the merger would be more than 40% accretive to Shore’s earnings per share in 2024. The combined company is expected to have $6 billion in total assets on a pro forma.
The holders of TCFC common stock have the right to receive 2.3287 shares of SHBI common stock. The existing Shore shareholders will own 60% of the outstanding shares of the combined company and TCFC shareholders will own the remaining 40%.
Once the merger is complete, the combined company will trade under the Shore Bancshares name, with its administrative headquarters located in Easton, MD.
The combined company will operate a desirable, contiguous footprint throughout the Delmarva Peninsula, Southern Maryland, the Greater Baltimore-Washington area and Central Virginia, with plans to expand into attractive neighboring counties such as Prince George's County, MD.
At the time of the deal announcement, Lloyd L. "Scott" Beatty, the president and CEO of Shore, stated, “This combination creates a solid and very promising future for the combined organization. We are bringing together two well-known financial services brands that focus on providing remarkable client experiences, helping individuals and businesses reach their financial goals. The combined bank will remain committed to our employees and the relationships that they have developed over decades of serving our communities.”
James M. Burke, the president and CEO of TCFC, said, “Shore and TCFC are both community-focused organizations, with similar cultures and visions for the future. Our combined size and resources will significantly enhance our scale and ability to help customers through higher loan limits, greater investment in technology and increased career opportunities for employees. This will allow the combined bank to continue to deepen its presence in our core markets and will also allow us to expand more effectively in the markets that we wish to serve.”
Over the past six months, shares of Shore have lost 9.1%, while TCFC has gained 11.4%. This compares with their industry’s decline of 4%.
Image Source: Zacks Investment Research
Currently, both SHBI and TCFC carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Inorganic Expansion Efforts by Other Firms
Last month, LPL Financial (LPLA - Free Report) announced that it closed the acquisition of the Private Client Group business of Boenning & Scattergood, a broker/dealer and registered investment adviser headquartered in West Conshohocken, PA.
As a result of the transaction, $4 billion of client assets are expected to onboard to LPLA’s custodial platform.
Rich Steinmeier, LPL Financial’s managing director and divisional president, said, “This is an exciting day for us, and we are proud to welcome the distinguished Boenning & Scattergood team to the LPL family. Boenning & Scattergood has a long history of helping its clients build their financial legacies. That aligns perfectly with our goal to provide the technology and support our advisors need to deliver the best client experience possible.”