Camp Hill-based LinkBancorp has struck a deal that will extend its footprint into Delaware, Maryland, New Jersey and Virginia.
The bank said yesterday it has agreed to a “merger of equals” with Partners Bancorp, a Salisbury, Maryland-based bank with a long history in the Delmarva region. The all-stock deal is valued at $167.8 million, according to a press release.
“This is a great deal for both parties and it certainly creates a major franchise in the Mid-Atlantic area,” Andrew Samuel, CEO and vice chairman of LinkBancorp, said in an interview.
Samuel, who helped launch LinkBancorp in 2018, would be CEO of the merged institution, which is expected to take the LinkBancorp name.
Why is this happening: LinkBancorp, which does business as LinkBank, has been looking to expand southward since raising more than $30 million in capital last year.
The merger with Partners adds branches in Delaware, Maryland, New Jersey and Virginia.
The combined bank would have about 30 branches overall, more than 250 employees and roughly $3 billion in assets, Samuel said.
LinkBancorp’s last merger was its 2021 union with GNB Financial Services, the Dauphin County-based parent of The Gratz Bank.
LinkBank now has 10 branches in Chester, Cumberland, Dauphin and Lancaster counties, as well as a loan office in York County. The bank had assets of $1.16 billion as of Dec. 31.
What is Partners: The bank traces its roots to the 1896 founding of The Bank of Delmarva.
Partners now operates two main subsidiaries, The Bank of Delmarva and Virginia Partners Bank, which was established in 2008.
Based in Seaford, Delaware, The Bank of Delmarva has 11 branches in Delaware and Maryland, as well as three South Jersey branches operating as Liberty Bell Bank.
Based in Fredericksburg, Virginia, Virginia Partners Bank has three offices in Fredericksburg and one in Reston.
It also has a branch and a loan production office in Maryland that operate as Maryland Partners Bank. The branch is in La Plata, while the loan office is in Annapolis.
Virginia Partners holds a controlling interest in Johnson Mortgage Co. LLC, a residential mortgage lender based in Newport News, Virginia, with offices in Fredericksburg and Williamsburg.
Partners had total assets of $1.57 billion as of Dec. 31.
What’s the deal. Under the terms of the proposed merger, shareholders of Partners would receive shares in LinkBancorp.
As a result, Partners shareholders would own 56% of the merged company, with LinkBancorp shareholders holding the remaining 44%.
The board would have 22 members: 12 from LinkBancorp and 10 from Partners. The chair would be Joseph Michetti Jr., LinkBancorp’s current chair. The vice chair would be Jeffrey Turner, current chair of Partners. Turner would become chair in September 2024.
The merged bank would operate under the LinkBank name with headquarters in Camp Hill.
Executives at Partners would head up regional markets in Delmarva, Northern Virginia and Greater Fredericksburg.
LinkBancorp’s execs — including LinkBancorp president Carl Lundblad and LinkBank president Brent Smith — would stay in their roles.
Stephens Inc. is the financial adviser for LinkBancorp. Its legal adviser is Luse Gorman PC.
Piper Sandler & Co. is the financial adviser for Partners, while Troutman Pepper Hamilton Sanders LLP is the legal adviser
What’s next: The banks have scheduled a conference call to discuss the proposed merger at 10 a.m. on Feb. 23.
The merger is expected to close in the third quarter this year, pending regulatory and shareholder approvals.
