In an effort to increase its presence in the Washington and Northern Virginia markets, Baltimore-based Mercantile Bankshares Corp. will acquire James Monroe Bancorp Inc. in a transaction valued at about $142.9 million in stocks and cash.
The acquisition of Monroe will add $530 million in total assets, $378 million in gross loans, $471 million in total deposits, and six full-service branches and a loan production office in the affluent markets of Northern Virginia and suburban Washington.
The agreement calls for shareholders of James Monroe to receive either cash in the amount of $23.50 for each Monroe share or 0.6033 shares of Bankshares stock for each share of Monroe stock they hold, provided that at least 50 percent, but not more than 66 percent, of the total amount is paid in Bankshares stock.
“The metro Washington and Northern Virginia market is a strategic focus for Mercantile Bankshares,” said Edward J. Kelly III, president and CEO of Bankshares. “While we have made great progress to date, this acquisition substantially advances our strategy by adding a high-quality commercial lending franchise with a team of talented commercial lenders who have operated in a culture similar to ours.”
Mercantile Bankshares Corp., with more than $16 billion in assets, is a regional multibank holding company headquartered in Baltimore. It comprises Mercantile-Safe Deposit and Trust Co., 10 communitybanks and a mortgage banking company.
James Monroe Bancorp has assets of more than $530 million and is headquartered in Arlington, Va.
