Sandy Spring to buy Revere Bank
Sandy Spring Bancorp in Olney, Md., has agreed to buy Revere Bank in Rockville, Md.
The $8.4 billion-asset Sandy Spring said in a press release Tuesday that it will pay $460.7 million in stock for the $2.6 billion-asset Revere. The deal, which is expected to close in the first quarter, priced Revere at 173.4% of its tangible book value.
“Our company has great momentum and the announcement … reinforces our position of strength in this market,” Daniel Schrider, Sandy Spring’s president and CEO, said in the release.
“Over the past two years we have significantly expanded our geographic footprint, delivered record annual earnings … and continued to build out a strong team of local professionals and industry experts,” Schrider added.
Revere has 11 branches in the Maryland suburbs of Washington. It has $2.3 billion in loans and $2.1 billion in deposits.
Sandy Spring said it expects the deal to be 9.1% accretive to earnings in the first full year of operations. It should take less than three years for Sandy Spring to earn back the projected 3.8% dilution to its tangible book value.
Sandy Spring said it plans to cut about 45% of Revere's annual noninterest expenses. The company expects to incur $32 million in merger-related expenses.
Ken Cook, Revere’s co-president and co-CEO, will become president of commercial banking at Sandy Spring.
Drew Flott, Revere’s other president and CEO, will become a division executive. In that role, he will help lead the integration effort and work with senior leadership to identify and implement growth strategies and operational improvements.
Three Revere directors will join Sandy Spring's board.
Kafafian Group and Kilpatrick Townsend & Stockton advised Sandy Spring, while Boenning & Scattergood provided a fairness opinion. Sandler O’Neill and Windels Marx Lane & Mittendorf advised Revere.