In what would be its first acquisition since 2007, Sandy Spring Bancorp Inc. in Olney, Md., announced late Tuesday that it is buying CommerceFirst Bancorp Inc. for $25.4 million in cash and stock.
The deal would give the $3.6 billion-asset Sandy Spring an additional $205 million of assets and five branches in three Maryland counties. CommerceFirst is primarily a business bank with a particular focus on Small Business Administration lending, which Sandy Spring President and Chief Executive Daniel J. Schrider said is "a prime market segment" for his bank.
CommerceFirst's president and chief executive, Richard Morgan, is expected to join Sandy Spring as president of its Greater Annapolis market.
Sandy Spring has not made an acquisition since it bought two banks, one in Virginia and one in Maryland, four years ago.
Under terms of its deal with CommerceFirst, Sandy Spring would acquire all the outstanding CommerceFirst shares for a combination of 50% cash and 50% stock at a price that works out to $13.60 per share.
The deal is expected to close in the second quarter.
