WashingtonFirst Bankshare, Inc. (WFBI)

[56Chevy]

Sandy Spring Bank announces deal to buy WashingtonFirst for $489M

May 16, 2017, 9:00am EDT

Olney-based Sandy Spring Bank is buying Reston-based WashingtonFirst Bank for $489 million in stock, a move that will expand the Maryland bank's footprint in Virginia.

The deal, announced Tuesday morning, works out to about $35.50 a share for WashingtonFirst, a 23 percent premium on its Monday closing price of $28.84.

Sandy Spring Bancorp Inc. stock (NASDAQ: SASR) dropped about 5 percent this morning on the news, falling $2.10 per share to $40.62. WashingtonFirst Bankshares Inc. stock (NASDAQ: WFBI) shot up nearly 19 percent, about $5.46 per share to $34.30 per share.

WashingtonFirst shareholders will get 0.8713 shares of Sandy Spring stock for each share they own, based on a Sandy Spring Bank share price of $41.89. The deal is expected to close by the end of the year.

After the deal, Sandy Spring will have a total asset base of $7.5 billion, making it larger than rival Eagle Bancorp of Bethesda but smaller than United Bank, with dual headquarters in McLean and West Virginia, based on 2016 figures.

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http://www.bizjournals.com/baltimore/news/2017/05/16/sandy-spring-bank-announces-deal-to-buy.html

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Washingtonfirst Bank (WFBI)
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