Shore Bancshares, Inc. ( SHBI Quick Quote SHBI - Free Report) has completed the previously announced merger deal with The Community Financial Corporation ("TCFC"). The deal, announced in December 2022, was valued at $254.4 million or $44.71 per share.
Both companies announced the receipt of all the required regulatory approvals in March 2023. Shore Bancshares received its shareholders' nod for the deal last month.
At closure, each share of Community Financial’s common stock was converted in the right to receive 2.3287 shares of SHBI common stock. TCFC shareholders received cash for fractional shares. The existing SHBI shareholders will own 60% of the combined company, and the former TCFC shareholders will own the remaining 40%.
The combined company will operate across Maryland, Virginia and Delaware regions with nearly $6 billion in assets, $4.5 billion in loans and $5.1 billion in deposits.
CBC (Community Financial's banking subsidiary) customers will continue to perform operations through their respective CBC and Shore United branches, websites and mobile apps. In the third quarter of 2023, the combined company expects to centralize its systems and services. All the branches of the combined company will run under the Shore United, N.A. (the banking subsidiary of SHBI) name once the consolidation is completed.
At the time of announcing the deal, Shore Bancshares stated that the merger is expected to be accretive to more than 40% of its earnings per share in 2024.
Following the merger deal, Lloyd L. "Scott" Beatty, Jr., former president and CEO of SHBI, stated, "Bringing together two of Maryland's leading community banks is a historic achievement and holds enormous potential to benefit our customers and the communities we serve, as well as to drive shareholder value and our company's long-term growth."
James M. Burke, president and CEO of the combined company, said, "We have a tremendous opportunity to deliver enhanced shareholder returns by building upon our combined bank's commitment to the success and prosperity of all our stakeholders. We will execute a business strategy with a focus on delivering exceptional customer service and increasing shareholder value while continuing to honor our community values."
The combined company's board of directors will consist of 20 members, with eight directors from TCFC and 12 directors from SHBI.
In the past month, shares of Shore Bancshares have gained 0.9% against the
industry’s decline of 2.9%. Image Source: Zacks Investment Research
Currently, SHBI carries a Zacks Rank #4 (Sell).
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