LINKBANCORP in Camp Hill, Pa., has agreed to buy Partners Bancorp in Salisbury, Md.
The $1.2 billion-asset LINK agreed to pay $167.8 million in stock for the $1.6 billion-asset parent of Bank of Delmarva and Virginia Partners Bank. The deal is expected to close in the third quarter.
The announcement comes weeks after OceanFirst Financial and Partners agreed to terminate their planned merger after being unable to secure regulatory approval.
Partners shareholders will own 56% of the shares in the combined company, which will operate at LINKBANCORP. Camp Hill will serve as the corporate headquarters, while the company will keep a “major operating presence” in Salisbury and Frederick, Va.
LINK, in connection with the transaction, completed a $10 million private placement of common stock.
Partners’ executives will lead the Delmarva/Maryland, northern Virginia and Fredericksburg regions for LINK.
LINK will have 12 of the company’s 22 board seats. Joseph Michetti Jr., LINK’s chairman, will remain in that post, while Jeffery Turner, Partner’s chairman, will serve as vice chairman. Turner will succeed Michetti as chairman in September 2024.
Andrew Samuel, LINK’s CEO, will remain CEO of the company after the deal closes. John Breda, Partners’ president and CEO, will become CEO of the Delmarva market.
The deal is expected to be 23% accretive to LINK’s 2024 earnings per share. It should take less than three years for LINK to earn back any dilution to its tangible book value.
LINK plans to cut about 18% of the combined company’s expenses, or roughly $13.8 million. About $5 million to $6 million of the savings will come from merging Partners’ banks.
The companies expect to incur about $22.8 million of merger-related expenses.
Stephens and Luse Gorman advised LINK. Piper Sandler and Troutman Pepper Hamilton Sanders advised Partners.