The acquisition will expand WesBanco's franchise by 37 offices located throughout Maryland, primarily in the Washington, DC and Baltimore
Image: WesBanco has agreed to acquire Old Line Bancshares. Photo: courtesy of rawpixel from Pixabay.
WesBanco, a multi-state bank holding firm, has agreed to acquire Old Line Bancshares in a $500m (£400m) all-stock transaction.
WesBanco and Old Line Bancshares have entered into an agreement and plan of merger, which has been approved by the board of directors of both firms.
As per terms of the deal, Old Line stockholders will secure 0.7844 of a share of WesBanco common stock for each share of Old Line common stock.
Upon completion of the transaction, WesBanco will have about $15.6bn (£12.5bn) in total assets and will provide banking and financial services through 236 financial centres in six states.
Operations of Old Line Bancshares
Old Line Bancshares is the parent firm of Old Line Bank, a Maryland-chartered trust company that has the powers of a commercial bank.
Based in Bowie of Maryland, the bank operates 37 branches in the suburban Maryland, including the counties of Anne Arundel, Baltimore, Calvert, Carroll, Charles, Harford, Howard, Frederick, Montgomery, Prince George’s and St. Mary’s, and Baltimore City.
Old Line had consolidated assets of around $3.1bn (£2.4bn), deposits of $2.4bn (£1.9bn), loans of $2.4bn (£1.9bn), and shareholders’ equity of $0.4bn (£0.3bn), as of 30 June this year.
Established in 1870, WesBanco is a diversified financial services institution with a community bank at its core and provides wealth management services.
WesBanco Bank, a banking subsidiary of WesBanco, manages 199 financial centres in the states of Indiana, Kentucky, Ohio, Pennsylvania, and West Virginia.
WesBanco had consolidated assets of around $12.5bn (£10.04bn), deposits of $8.7bn (£6.9bn), loans of $7.7bn (£6.1bn) and shareholders’ equity of $2.1bn (£1.6bn), as of 30 June this year.
The company also has an insurance agency called WesBanco Insurance Services and full service broker/dealer known as WesBanco Securities.
Subject to the approvals of the appropriate regulatory authorities and approvals by the shareholders of both companies, the deal is expected to be completed during the next two to three quarters.
WesBanco president and CEO Todd Clossin said: “The merger with Old Line is an example of the continued solid execution on our long-term growth strategies, as it brings together two high-quality institutions with disciplined risk cultures and a strong customer focus.
“During the last three years, we have significantly diversified our institution into new, high-growth markets with great demographics that will now span six states across the Midwest, Mid-South, and, now, the Mid-Atlantic region as a top ten financial institution in the state of Maryland.”