Shore Bancshares, the financial holding company of Shore United Bank (Shore United), and The Community Financial Corporation (TCFC), the bank holding company of Community Bank of the Chesapeake (CBC), announced the closing of their previously announced merger of equals, combining the two banks to create one of Maryland's top community banks.
Lloyd L. "Scott" Beatty, Jr., former President and Chief Executive Officer of SHBI, said, "Bringing together two of Maryland's leading community banks is a historic achievement and holds enormous potential to benefit our customers and the communities we serve, as well as to drive shareholder value and our company's long-term growth. I'm especially proud of our organizations' management teams whose hard work, perseverance, and truly collaborative spirit made this combination of like-minded banks possible."
"We have great respect for Scott, his management team and the significant organic and strategic growth built through his tenure," said James M. Burke, President and Chief Executive Officer of the combined company. "I am proud to succeed Scott and to lead the combined management team. We have a tremendous opportunity to deliver enhanced shareholder returns by building upon our combined bank's commitment to the success and prosperity of all our stakeholders. We will execute a business strategy with a focus on delivering exceptional customer service and increasing shareholder value while continuing to honor our community values."
The combined organization has approximately $6.0 billion in assets with approximately $4.5 billion in loans and $5.1 billion in deposits throughout its operations through locations spanning Maryland, Virginia and Delaware. All branches of the combined company will operate under the Shore United banner once the integration is completed. SHBI's and Shore United's corporate headquarters remain in Easton, MD. The combined company will trade under SHBI's ticker symbol (SHBI) on the Nasdaq Global Select Stock Market.
CBC will initially operate under both the CBC and Shore United brands, and customers will continue to conduct business through their respective CBC and Shore United branches, websites and mobile apps.
Board of Directors
The combined company's Board of Directors consists of 20 members, with 12 directors from SHBI and eight directors from TCFC:
- Alan J. Hyatt (Chair)
- Austin J. Slater, Jr. (Vice Chair)
- Michael B. Adams
- James M. Burke
- R. Michael Clemmer, Jr.
- William E. Esham, III
- Louis P. Jenkins, Jr.
- David S. Jones
- James A. Judge
- Clyde V. Kelly, III
- John A. Lamon
- Frank E. Mason, III
- Rebecca M. McDonald
- David W. Moore
- Mary Todd Peterson
- E. Lawrence Sanders, III
- Joseph V. Stone, Jr.
- Esther A. Streete
- Konrad M. Wayson
- Dawn M. Willey
Advisors
Keefe, Bruyette & Woods, A Stifel Company, acted as financial advisor to SHBI in the transaction and delivered a fairness opinion to the Board of Directors of SHBI. Holland & Knight LLP served as legal counsel to SHBI. Piper Sandler & Co. acted as financial advisor to TCFC and delivered a fairness opinion to the Board of Directors of TCFC. Kilpatrick Townsend & Stockton LLP served as legal counsel to TCFC.