Revere Bank in Laurel, Md., has agreed to buy BlueRidge Bank in Frederick, Md.
The $749 million-asset Revere said in a press release Monday that it will pay about $20 million in stock for the $205 million-asset BlueRidge. Revere estimated that it should have more than $1 billion in assets in the first quarter when the deal is expected to close.
Revere said it expects the transaction to be accretive to its tangible book value per share and earnings per share within 12 months after completion. The deal also allows Revere to expand into Baltimore.
The deal is a reunion of sorts for Brian Gaeng, BlueRidge’s president and chief executive, and Revere’s co-CEOs, Andrew Flott and Ken Cook. The executives worked together at Mercantile Bankshares in Baltimore, which was bought in 2007 by PNC Financial Services Group. Gaeng is set to join Revere’s executive management team and board.
“We are very familiar with the BlueRidge team and look forward to the opportunities our expanded market and talent will bring,” Flott said in the release. “With this merger we will increase our lending capabilities and cost efficiencies while staying focused on speed and responsiveness.”
Revere, which recently raised nearly $16 million through a private placement, was advised by Sandler O’Neill and Windels Marx Lane & Mittendorf. BlueRidge was advised by FinPro Capital Advisors and Luse Gorman.