Press release
Shore Bancshares, Inc. Announces Completion of Acquisition of Severn Bancorp, Inc.
EASTON, Md., Nov. 1, 2021 /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ: SHBI) (the "Company" or "Shore"), the holding company of Shore United Bank, National
About this update from Shore Bancshares, Inc.
[{"type":"text","content":"EASTON, Md., Nov. 1, 2021 /PRNewswire/ -- Shore Bancshares, Inc. (NASDAQ: SHBI) (the \"Company\" or \"Shore\"), the holding company of Shore United Bank, National Association (the \"Shore United\"), announced today that it has completed the acquisition, effective as of October 31, 2021, of Severn Bancorp, Inc. (NASDAQ: SVBI) (\"Severn\"), the savings and loan holding company of Severn Savings Bank, FSB, a federally chartered savings bank headquartered in Annapolis, Maryland. In connection with the merger, Shore United consummated its conversion to a national bank on October 29, 2021.\n\n \n \n \n \n \n \n\n \nUnder the terms of the merger agreement, each share of Severn common stock was converted into the right to receive 0.6207 shares of Company common stock and $1.59 in cash. The value of the total deal consideration was approximately $169.8 million, which is based upon the closing price of the Company's common stock on October 29, 2021, the last trading day prior to the closing, and includes aggregate cash consideration of approximately $20.6 million and $310 thousand of aggregate cash consideration payable to holders of unexercised options exercisable for shares of Severn common stock.\nLloyd L. Beatty, Jr., President and Chief Executive Officer of the Company, commented, \"We are pleased to welcome the customers, employees and shareholders of Severn. This transaction enables us to enter the attractive market of Anne Arundel County and makes Shore United the 3rd largest bank headquartered in Maryland. We believe our strategic combination creates one of the strongest commercial banks in Maryland, with significant opportunities to provide a wider array of products and services to provide a superior banking experience for our commercial and retail customers.\"\n\"We believe the combination of Shore and Severn will produce many long-term benefits for customers, employees and shareholders,\" said Alan J. Hyatt, Chairman, President and Chief Executive Officer of Severn. \"I look forward to serving on the Boards of Directors of Shore Bancshares and Shore United Bank and helping to guide the continued growth of the franchise.\"\nWith the addition of Severn, on a pro forma combined basis, the Company would have total assets of approximately $3.2 billion, total shareholders' equity of approximately $311.3 million and total deposits of...