Delmarva Bancshares in Cambridge, Md., has agreed to buy Easton Bancorp in Easton, Md.
Delmarva, the parent of the $192 million-asset 1880 Bank, will pay $8 million in cash for the $133 million-asset Easton. The transaction is expected to close in the third or fourth quarter.
Easton is "a natural extension of our current branch footprint," Kim Liddell, Delmarva's chairman and chief executive, said in a press release Tuesday. "It is a combination of two well-known and likeminded banks in very attractive contiguous markets creating a strong, community focused financial institution."
William David Hill, Easton's founder and chairman, will join Delmarva's board.
Delmarva said that, in conjunction with the acquisition, it entered into a private placement to sell equity to certain unnamed investors immediately prior to the deal's closing. The capital will be used to fund the cash consideration and the redemption price of Easton's subordinated debt, among other things.
Raymond James and BuckleySandler advised Delmarva, while Monocacy Financial Advisors and Nelson Mullins Riley & Scarborough advised Easton. Raymond James will also serve as the sole placement agent for Delmarva's private placement, with Alston & Bird serving as Raymond James' legal counsel.