Maryland banks plan to merge
BV Financial in Baltimore has agreed to buy Delmarva Bancshares in Cambridge, Md.
The $398 billion-asset BV Financial said in a press release Thursday that it will pay $54 million in cash for the $377 million-asset parent of 1880 Bank. BV Financial said it plans to fund the acquisition by issuing $30 million in subordinated debt and a cash dividend from its bank.
The deal is expected to close in the fourth quarter and BV Financial said it should be accretive to its 2021 earnings per share.
"This transaction marks another strategic acquisition … as we continue to expand our footprint," David Flair, BV Financial’s co-president and co-CEO, said in the release. "1880 Bank is a well-run and well-respected bank and we will make sure that their customers continue to receive the level of service they have come to expect."
"We have come a long way since my joining Delmarva over a decade ago, from the brink of failure to joining forces with” BV Financial, said Kim Liddell, Delmarva’s chairman, president and CEO. “We believe our customers will benefit from [BV Financial’s] increased capital and lending capacity.”
Liddell will become BV Financial’s chairman when the deal closes.
Luse Gorman and Banks Street Partners advised BV Financial. Nelson Mullins Riley & Scarborough and Raymond James advised Delmarva.