Mercantile buying another Va. bank $22.7 million deal for Marshall National

Banks

November 21, 1997|By Bill Atkinson | Bill Atkinson,SUN STAFF

Mercantile Bankshares Corp. said yesterday that it has entered into a definitive agreement to acquire Marshall National Bank and Trust Co. in a deal valued at $22.7 million.

The move by Mercantile, which is Maryland's largest independently owned banking company, with $7 billion in assets, expands its Virginia franchise where it already operates three affiliated banks.

"It is exactly the kind of bank were are looking for in our family of community banks," said H. Furlong Baldwin, Mercantile's chairman and chief executive. "It is an established bank and it is an old-line bank in a strong area."

Marshall National has $75.5 million in assets, few loan problems and it is highly profitable.

It is based in Marshall, Va., which is about 60 miles west of Washington, and it operates one branch in Warrenton, Va.

Mercantile's shares fell $1 yesterday to close at $33.125.

Under the agreement approved by directors of both banks, Mercantile is to exchange 1.75 shares for each share of common stock of Marshall National.

Marshall has 379,970 share outstanding. An additional 7,000 shares may be issued to holders of stock options, Mercantile said in a statement.

The transaction is subject to approval by regulators and Marshall National shareholders.

Mercantile has 17 banking affiliates in Maryland, one in Delaware and three in Virginia.

Last year, it announced the acquisitions of two community banks that bolstered its position on the Eastern Shore.

Pub Date: 11/21/97

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