Hampton Roads Bankshares Inc. in Norfolk, Va., announced Wednesday that it has a deal to buy Shore Financial Corp. in Onley, Va., for about $55 million in cash and stock.
Hampton Roads, which has $543 million of assets and 17 branches, would pick up eight branches from Shore Bank, some of which are in the Eastern Shore counties of Accomack and Northampton, where the Norfolk company has no branches.
Hampton Roads would also gain its first branches in Maryland, where the $269 million-asset Shore has three. "Their market is a more rural market, and we're a very urban market," Jack W. Gibson, the president and chief executive of Hampton Roads, said in an interview, "which is why the two banks complement each other very well."
The deal is expected to close in the second quarter. Under its terms Shore stockholders are to get $22 cash or 1.8 share of Hampton Roads common stock for each share owned.
Shore shareholders could also elect to receive a combination of cash and shares.
At the close of trading Wednesday, Shore's shares were up nearly 40% from Tuesday's close, to $18. Hampton Roads shares fell 3.3%, to $11.12.
