Howard Bancorp, Inc. (NASDAQ:HBMD) and Cecil Bancorp, Inc. (OTCBB:CECB)
today jointly announced that their respective banking subsidiaries,
Howard Bank and Cecil Bank, have entered into a purchase and assumption
agreement for Howard Bank to purchase the Cecil Bank branch located at 3
West Bel Air Ave., Aberdeen, MD 21001.
Pursuant to the agreement, Howard Bank will acquire a minimum of $38.0
million in loans and $37.9 million in deposits from Cecil Bank.
Mary Ann Scully, Howard Bank’s President and CEO, said of the
transaction, “Howard Bank’s successful track record of organic growth in
the attractive markets of Greater Baltimore - our birthplace in Howard
County, our developing presence in Anne Arundel County and our announced
branch in Towson, is now complemented by our extension into the Harford
County market through the acquisition of the Cecil Bank branch in
Aberdeen. Harford County presents many exciting opportunities and we are
presently searching for an additional location in the Bel Air
marketplace. We look forward to working with Cecil Bank to welcome these
customers to Howard Bank and to continuing their strong commitment to
community and tradition of customer service.”
Mary Halsey, Cecil Bank’s President and CEO, stated, “We are looking
forward to seamlessly transition our Aberdeen customer base into their
organization. This transaction, which will involve approximately
10% of our deposits, is part of our ongoing strategy to strengthen our
capital position as we concentrate on our core markets. Most
importantly, the capital impact of the transaction reinforces our
ability to meet the financial needs of our current and new customers,
while focusing on building shareholder value. We are especially
pleased that our branch customers and employees will find a new home at
a bank that shares our culture and values.”
The purchase is subject to customary closing conditions, including
receipt of all necessary regulatory approvals, and is expected to be
completed in the third quarter of 2013.
Griffin Financial Group acted as financial advisor to Howard Bank.
Ober|Kaler served as legal counsel to Howard Bank and Spidi & Fisch, PC
and Venable served as legal counsel to Cecil Bank.
About Howard Bancorp, Inc.
Howard Bancorp, Inc. is a bank holding company with total assets of $402
million as of December 31, 2012. Its principal operating subsidiary,
Howard Bank, located in Ellicott City, MD, is a growth-focused community
bank serving businesses, professionals and individuals in the Greater
Baltimore area through five full service branches and also a regional
office in Annapolis, MD. Howard Bank is a wholly owned subsidiary of
Howard Bancorp, Inc. (NASDAQ: HBMD). For information, call 410-750-0020
or visit www.howardbank.com
About Cecil Bancorp, Inc.
Cecil Bancorp, Inc. is the parent company of Cecil Bank, headquartered
in Elkton, Maryland, with 14 locations in Harford and Cecil
Counties, Maryland. Cecil Bank is a full-service, community-oriented
financial institution dedicated to serving the financial services needs
of consumers and businesses within its market area. At December 31,
2012, Cecil Bancorp, Inc. had consolidated assets of $440.0 million.
This statements in this press release regarding the anticipated timing
and impact of Howard Bank’s purchase of Cecil Bank’s Aberdeen branch are
forward-looking statements as defined by the Private Securities
Litigation Reform Act of 1995 or the Securities and Exchange Commission
in its rules, regulations, and releases. We intend that such
forward-looking statements be subject to the safe harbors created
thereby. Such statements are based on our current beliefs and
expectations and are inherently subject to significant business,
economic and competitive uncertainties and contingencies, many of which
are beyond our control. In addition, such forward-looking statements are
subject to assumptions with respect to future business strategies and
decisions that are subject to change. Potential risks and uncertainties
include, but are not limited to, the risk of not receiving required
regulatory approvals and changes in local and national economic
conditions. Accordingly, actual results may differ from those expressed
in the forward-looking statements, and the making of such statements
should not be regarded as a representation by the companies or any other
person that results expressed therein will be achieved. We do not
undertake, and specifically disclaim any obligation, to publicly release
the result of any revisions that may be made to any forward-looking
statements to reflect events or circumstances after the date of such
statements or to reflect the occurrence of anticipated or unanticipated
events.
