Columbia plans to acquire Suburban Bancshares

Stock swap valued at $33.9 million

Banking

September 29, 1999|By Bill Atkinson | Bill Atkinson,SUN STAFF

Columbia Bancorp said yesterday that it has signed a definitive agreement to acquire Suburban Bancshares Inc. of Greenbelt in a stock swap valued at $33.9 million.

The deal, which is expected to close in the first quarter next year, would boost Columbia's assets by $222.6 million to $679.8 million, and add eight branches, giving it 23 locations in Howard, Prince George's, Baltimore and Montgomery counties.

The companies said there is little overlap in the branches and none will be closed.

"This merger will further enhance our presence in the prosperous Baltimore-Washington corridor and provide excellent opportunities for continued rapid growth," said John M. Bond Jr., president and chief executive officer of the Columbia-based bank.

The deal's value represents a 37 percent premium to market for shareholders of Suburban based on the shares' last closing price of $2.1875.

After the merger, Bond is to continue as president and CEO of Columbia, and Winfield Kelly, chairman and CEO of Suburban, is to be chairman. James R. Moxley Jr., Columbia's chairman, is to become vice chairman of the company.

The merger is subject to approval by shareholders of both companies and by regulatory agencies.

Columbia shares fell 6.25 cents to close at $12.8125 yesterday.

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