LANCASTER, Pa. — Fulton Financial Corp. agreed to buy Columbia Bancorp of Maryland for $313 million
Columbia Bancorp, with approximately $1.3 billion in assets, operates 19 full-service community banking offices and five retirement community banking offices in Howard, Montgomery, Prince George's and Baltimore Counties as well as Baltimore City.
Shares of Columbia Bancorp's stock that will be converted into Fulton Financial stock will be exchanged based on a fixed exchange ratio of 2.325 shares of Fulton Financial stock for each share of Columbia Bancorp's stock. Shares of Columbia Bancorp stock that will be converted into cash will get $42.48 a share of Columbia Bancorp stock.
Based on the $18.49 per share closing price of Fulton Financial stock on Tuesday and the minimum cash consideration, the transaction is valued at approximately $313 million.
The deal is subject to approval by the Federal Reserve, the Maryland Commissioner of Financial Regulation and by Columbia Bancorp shareholders. It is expected to close in the first quarter of 2006.
Upon completion, Columbia Bancorp Chairman and CEO John Bond Jr. will continue in those roles while John A. Scaldara Jr. will stay as president and chief operating officer.
Fulton Financial recently reported second-quarter profits rose 9.8%, helped by the integration of First Washington State Bank.
