Old Line in Maryland to be sold to WesBanco for $500 million
WesBanco in Wheeling, W.Va., has agreed to buy Old Line Bancshares in Bowie, Md.
The $12.5 billion-asset WesBanco said in a press release Tuesday that it will pay $500 million in stock for the $3.1 billion-asset Old Line. The deal, which is expected to close late this year or in early 2020, priced Old Line at 177% of its tangible book value.
"This is an exciting time in the measured and thoughtful evolution and strategic diversification of WesBanco," Todd Clossin, the company’s president and CEO, said in the release. The acquisition “is an example of the continued solid execution on our long-term growth strategies, as it brings together two high-quality institutions with disciplined risk cultures and a strong customer focus.”
Old Line has 37 branches, $2.4 billion in deposits and $2.4 billion in loans.
The deal is expected to be 4.3% accretive to WesBanco’s 2020 earnings, excluding certain merger-related expenses. Overall, the company expects to incur $30 million in merger-related charges.
WesBanco said it plans to cut about 31% of Old Line’s annual noninterest expense. It should take a little more than three years for WesBanco to earn back a projected 3.8% dilution to its tangible book value.
Two Old Line directors, including President and CEO James Cornelsen, will join WesBanco’s board. Cornelsen will also serve as chairman of WesBanco’s mid-Atlantic market. Mark Semanie, Old Line's chief operating officer, will become mid-Atlantic market president.
WesBanco was advised by D.A. Davidson; Phillips, Gardill, Kaiser & Altmeyer; and K&L Gates. Old Line was advised by Keefe, Bruyette & Woods and Baker, Donelson, Bearman, Caldwell & Berkowitz.