Sandy Spring Bancorp will purchase CommerceFirst Bancorp and its wholly-owned subsidiary, CommerceFirst Bank for $25.4m stock and cash deal under a definitive agreement signed by the two companies.
As per the terms of the agreement, Sandy will gain about $205m in assets, $181m in loans, and $180m in deposits as well as five branches in Anne Arundel, Howard and Prince George’s counties, central Maryland, US.
According to the agreement, 0.843 Sandy Spring shares will be exchanged for each share of CommerceFirst in addition to cash of $13.60 per share.
The consolidated merger will consist of 732,000 shares of Sandy Spring common stock and $12.4m in cash.
The transaction, approved by both CommerceFirst’s and Sandy Spring ‘s board of directors, is expected to close in the second quarter of 2012, subject to certain conditions, CommerceFirst’s shareholders’ and regulatory approvals.
Sandy Spring financial advisor for the transaction was Robert Baird & Co while legal counsel was provided by Kilpatrick Townsend & Stockton. CommerceFirst advisor and legal counsel were Scott & Stringfellow and BuckleySandler respectively.