Maryland-based Howard Bancorp, the parent of Howard Bank, has agreed to acquire local lender 1st Mariner Bank in a deal worth $163.4m.
Under the arrangement, 1st Mariner will merge with Howard Bank. The combined entity will have 21 offices, with assets of $2.1bn, portfolio loans of $1.5bn and deposits of $1.6bn.
As per the agreed terms, 1st Mariner shareholders will receive 1.6624 shares of Howard common stock for each share held.
The merged group will operate as Howard Bank and will be based in Baltimore. Its board will have 14 members, including eight from the existing Howard board and six from the 1st Mariner board.
1st Mariner CEO Robert Kunisch will join as president and the board of directors at Howard following the merger, while Howard chairman and CEO Mary Ann Scully will retain her existing role.
The deal already received the nod from the companies’ boards of directors and is now expected to be completed in the fourth quarter of 2017, subject to stockholder and regulatory approvals.
“Both Howard and 1st Mariner share a focus on privately held businesses in the Greater Baltimore market. We think this transaction is transformational not only for our shareholders but also for our teams, our customers, and the Greater Baltimore community. We are excited to have the 1st Mariner customers, board members and staff join us, and we look forward to being welcomed by them,” Scully said.