WASHINGTON -- Crestar Financial Corp. said it signed a letter of intent to acquire Annapolis Bancorp Inc., the holding company for Annapolis Federal Savings Bank, in a tax-free exchange to Annapolis shareholders valued at about $15.4 million.
The companies said each Annapolis shareholder will get $12.75 in Crestar common stock for each share of Annapolis Bancorp stock held. With 1,210,000 Annapolis shares outstanding, including stock options, Crestar will issue about 400,000 shares to Annapolis shareholders based on the current price of Crestar stock, the companies said.
Crestar said it will purchase shares on the open market from time to time so there will be no resulting increase in the amount of Crestar stock outstanding. Annapolis granted Crestar an option to buy an amount of shares equal to about 20% of Annapolis Bancorp's shares outstanding subject to certain conditions, the companies said.
The acquisition would bring to Crestar deposits of about $288 million, about $221 million in loans, and over 36,000 new customer accounts, the companies said.
Annapolis Federal would become part of Crestar's Washington region. Annapolis Federal president Gilbert L. Hardesty would continue in that position, and most, if not all, of the Annapolis branches would remain open, Crestar said.
The companies expect to complete the deal in mid-1994. The deal is subject to the signing of a definitive agreement, expected later this year as well as standard regulatory approval and approval by Annapolis shareholders, expected in April 1994.