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Shore Bancshares (SHBI) Gets Shareholder Nod for TCFC Merger

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Shore Bancshares, Inc. (SHBI - Free Report) , the holding company of Shore United Bank, N.A., announced that its shareholders gave the nod to the merger deal with The Community Financial Corporation . SHBI will be the surviving corporation.

The transaction, announced in December 2022 and valued at $254.4 million or $44.71 per share, is expected to close on Jul 1, 2023. Since both companies announced the receipt of all the required regulatory approvals in March 2023, the completion of the merger remains subject to customary closing conditions.

After the deal completion, the holders of Community Financial common stock have the right to receive 2.3287 shares of SHBI common stock. Also, the combined company will trade under the Shore Bancshares name, with its administrative headquarters located in Easton, MD.

Following the shareholders' approval, Lloyd L. Beatty, Jr., president and CEO of Shore Bancshares, stated, "The receipt of shareholder approval marks an important milestone for our combination of two well-known financial services brands in Maryland. The support for the transaction by each company's respective shareholder bases is evidenced by an overwhelming amount of voted shares voting in favor of the proposals required to effect the combination, which we expect will create meaningful shareholder value as it expands opportunities for our customers, employees, and communities."

James M. Burke, president and CEO of Community Financial, said, "Today's vote brings us one step closer to creating one of the leading community banks headquartered in Maryland. We look forward to providing additional updates to our stakeholders as we continue to meticulously plan for the joining of our two similar-minded organizations."

At the time of announcing the deal, it was noted that the combined company will have $6 billion in assets on a pro forma basis. The merger would be more than 40% accretive to Shore Bancshares’ earnings per share in 2024. The existing SHBI shareholders will own 60% of the outstanding shares of the combined company and TCFC shareholders will own the remaining 40%.

Over the past three months, shares of Shore Bancshares have lost 12.6% compared with the industry’s decline of 5.1%.

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Currently, SHBI carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Inorganic Expansion Effort by Another Bank

UBS Group AG (UBS - Free Report) crossed a significant milestone by completing the acquisition of Credit Suisse. UBS announced the deal in March 2023, in an emergency takeover involving government-backed efforts to fend off panic in the global banking system, following the collapse of Silicon Valley Bank.

As a result of the merger, Credit Suisse shareholders will receive one UBS share for every 22.48 outstanding shares held. With the deal closure, Credit Suisse Group AG was merged into UBS Group AG. The combined entity will operate as a consolidated banking group.

UBS Group AG will be managing two separate parent banks, UBS AG and Credit Suisse AG. Both these institutions will continue to own their subsidiaries and branches, serve their clients and deal with counterparties.

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