ACNB agrees to buy Frederick County Bancorp in Maryland
ACNB in Gettysburg, Pa., has agreed to buy Frederick County Bancorp in Frederick, Md.
The $1.7 billion-asset ACNB said in a press release Tuesday that it will pay $60 million in stock for the $442 billion-asset Frederick County Bancorp. The deal, which is expected to close in the fourth quarter or first quarter, priced Frederick County Bancorp at 165.5% of its tangible book value.
Frederick County Bancorp has five branches, $372 million in deposits and $342 million in loans.
One Frederick County Bancorp director will join ACNB’s board.
“Frederick is a growing, vibrant market for community banking,” James Helt, ACNB’s president and CEO, said in the release. “Strategically, this acquisition is intended to complement our operations [in Carroll County, Md.] … with profitable growth opportunities adjacent to our current footprint.”
ACNB said it plans to cut about 37% of Frederick County Bancorp’s annual noninterest expense. The company expects to incur $7.9 million in merger-related expenses.
The deal should be 7.8% accretive to ACNB’s 2021 earnings per share. It will likely take ACNB more than four years to earn back the projected 5.3% dilution to its tangible book value.
Bybel Rutledge and Boenning & Scattergood advised ACNB. Buckley and Sandler O’Neill advised Frederick County Bancorp.