Old Line Bancshares in Bowie, Md., has agreed to buy DCB Bancshares in Damascus, Md.
The $1.7 billion-asset Old Line said in a press release Wednesday that it will pay $40.7 million, or $25.22 a share, for the $311 million-asset parent of Damascus Community Bank. The all-stock deal, which is expected to close in mid-2017, values DCB at 160% of its tangible book value.
The acquisition will be Old Line’s fourth since 2011.
Old Line said it expects the acquisition to be immediately accretive to its tangible book value and earnings, excluding $4.6 million in merger-related expenses. The company also said it plans to cut DCB's annual noninterest expense by 40%.
“We believe that Damascus Community Bank and Old Line Bank share a similar set of values and we look forward to building a strong and lasting partnership," James Cornelsen, Old Line’s president and CEO, said in the release.
Stephen Deadrick, DCB’s chairman, and one other individuals are expected to join Old Line’s board.
Ambassador Financial Group and Baker, Donelson, Bearman, Caldwell & Berkowitz advised Old Line. RP Financial and Gordon Feinblatt advised DCB.
