Old Line Bancshares and DCB Bancshares Announce Execution of Merger Agreement

Fintech Investing

Old Line Bancshares (NASDAQ:OLBK), parent company of Old Line Bank, and DCB Bancshares (OTCPINK:DCBB), the parent company of Damascus Community Bank, jointly announced the execution of a definitive merger agreement that provides for the acquisition of DCB Bancshares by Old Line Bancshares for stock in a deal valued at approximately $40.7 million, or around $25.22 …

Old Line Bancshares (NASDAQ:OLBK), parent company of Old Line Bank, and DCB Bancshares (OTCPINK:DCBB), the parent company of Damascus Community Bank, jointly announced the execution of a definitive merger agreement that provides for the acquisition of DCB Bancshares by Old Line Bancshares for stock in a deal valued at approximately $40.7 million, or around $25.22 per share of DCB Bancshares common stock. The merger consideration will be paid in newly issued shares of Old Line Bancshares common stock.
As quoted in the press release:

Pursuant to the terms of the Merger Agreement, DCB Bancshares, with consolidated assets of approximately $311 million at December 31, 2016, will be merged with and into Old Line Bancshares, an institution with consolidated assets of $1.7 billion at December 31, 2016, with Old Line Bancshares surviving the merger (the “Merger”). Immediately after the Merger, Damascus Community Bank, a Maryland commercial bank with six banking locations, will merge with and into Old Line Bank, a Maryland trust company with 21 banking offices, with Old Line Bank being the surviving bank. The Merger, anticipated to close in mid-2017, will be Old Line Bancshares’ fourth since 2011. The Merger is expected to be immediately accretive to Old Line Bancshares’ tangible book value and immediately accretive to its earnings, excluding the expenses of the Merger.
Craig E. Clark, Chairman of the Board of Directors of Old Line Bancshares, Inc., said, “The combination of Old Line Bank and Damascus Community Bank will create the third-largest independent commercial bank based in Maryland, with assets of approximately $2 billion and, with 27 full service banking offices serving nine counties, the combined institution will have the second-most banking locations in Maryland of all independent Maryland-based commercial banks.”

Click here for the full text release.

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