By Eileen Ambrose, The Baltimore Sun
8:01 PM EDT, September 10, 2012
Old Line Bancshares has reached an agreement to acquire WSB Holdings Inc., the parent of Washington Savings Bank, for about $49 million in cash and stock, the Bowie-based companies announced Monday.
WSB, which has $374 million in assets and five branches, will be merged into Old Line Bancshares. Once the acquisition is completed — which is expected to happen in the second quarter of next year — Old Line will have more than $1.2 billion in assets and 24 branches in five Maryland counties, making it the fifth-largest independent commercial bank based in Maryland, the company said.
James W. Cornelsen, president and chief executive of Old Line Bancshares, said that two years ago the company nearly doubled in assets and significantly boosted its earnings when it acquired Maryland Bank & Trust.
"Today, with our same executive team, the experience from the integration and greater resources, we are partnering with another local institution and expect to continue to build on those successes," Cornelsen said in a statement.
The deal, worth roughly $6 per share, needs the approval of shareholders and banking regulators. WSB's shareholders will have the option of receiving Old Line common stock, cash or a combination of both. Old Line is expected to issue about 2.9 million in shares and to pay $17 million in cash to WSB shareholders.
"Over the last ten years, we have seen Maryland's largest independent banks vanish, purchased one-by-one by out-of-state banks," Phillip C. Bowman, chief executive of WSB Holdings, said in a statement. "This partnership is a step toward beginning to fill that void."
For the second quarter ended in June, Old Line earned $2 million, or 29 cents per share, up about 72 percent for the corresponding quarter a year earlier. WSB reported a $174,000 profit, or 2 cents per share, in the second quarter compared with $321,000 in earnings a year earlier.
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