Shore Bancshares in Easton, Md., has agreed to buy three branches around Baltimore from Northwest Bancshares in Warren, Pa.
The $1.2 billion-asset Shore said in a press release Tuesday that it will also gain $214 million in deposits, $152 million in performing loans and $40 million of cash. Shore said it will pay an 8% premium for the deposits. The deal is expected to close in the second quarter.
Shore said it expects the deal to increase its pretax income by $1.7 million this year and by $2.5 million in 2018. Shore plans to keep all of the branches' employees.
"These branches are a natural extension of our Eastern Shore base of operations and the transaction reflects our announced intention to expand our footprint through accretive acquisition opportunities," Scott Beatty, Shore's president and CEO, said in the release.
Monocacy Financial Advisors and Holland & Knight advised Shore. Sandler O'Neill and Luse Gorman advised the $7.7 billion-asset Northwest.
