FVCBankcorp in Fairfax, Va., will gain its first branches in Maryland with an agreement to buy Colombo Bank in Rockville, Md.
The $1.1 billion-asset FVCB said in a press release Thursday that it will pay $33.3 million in cash and stock for the $195 million-asset Colombo. The deal is expected to close in the fourth quarter.
Colombo has five branches, $154 million in loans and $145 million in deposits.
“We are extremely pleased about … the transformative opportunities the combination creates for us,” David Pijor, FVCB’s chairman and CEO, said in the release. “We currently lend in these markets and believe this merger provides substantial opportunities for growth of the combined bank.”
FVCB said it expects the deal to be immediately accretive to earnings per share with “modest dilution” to tangible book value.
FVCB said it will raise at least $10 million in capital to help pay for the acquisition.
Sandler O’Neill and Buckley Sandler advised FVCB. Silver, Freedman, Taff & Tiernan advised Colombo, while RP Financial provided a fairness opinion.