CRESTAR TO ACQUIRE ANNAPOLIS BANCORP, INC.
WASHINGTON, Nov. 17 /PRNewswire/ -- Crestar Financial Corporation (NYSE: CF) and Annapolis Bancorp, Inc., announced today that they have signed a letter of intent under which Crestar will acquire Annapolis Bancorp, Inc., the holding company for Annapolis Federal Savings Bank, a $332 million-asset thrift institution with 10 branches in and around Annapolis, Md. The transaction, which is expected to be completed by mid-1994, would bring to Crestar deposits of approximately $288 million, loans of about $221 million and more than 36,000 new customer accounts. Annapolis Bancorp shareholders will receive $12.75 in Crestar common stock for each share of Annapolis Bancorp stock owned. The transaction will be a tax-free exchange to Annapolis shareholders. There are 1,210,000 shares of Annapolis Bancorp stock outstanding (including stock options), which results in a total transaction value of approximately $15.4 million. Based on the current price of Crestar stock, approximately 400,000 Crestar shares will be issued to shareholders of Annapolis Bancorp. Crestar intends to purchase in the open market, from time to time, the same number of shares used in the transaction so there will be no resulting increase in the amount of Crestar stock outstanding. The letter of intent announced today is subject to signing of a definitive agreement, expected later this year, plus standard regulatory approvals and approval of Annapolis Bancorp shareholders, anticipated in April 1994. As part of the letter of intent, Annapolis Bancorp has granted Crestar an option to purchase from the company an amount of shares equal to approximately 20 percent of Annapolis Bancorp's outstanding shares subject to certain conditions contained in the option agreement. Upon completion of the acquisition, Crestar said, Annapolis Federal would become part of Crestar's Greater Washington Region, where it would be managed as a community bank within the Crestar system. Annapolis Federal's current president, Gilbert L. Hardesty, would serve as president-Annapolis. Crestar said it anticipates keeping open most if not all of Annapolis Federal's branches. "Becoming part of a major financial institution like Crestar will be good for Annapolis Bancorp's shareholders, our customers and our employees," noted Hardesty. "We look forward to the completion of this transaction." "For Crestar, the acquisition of this solid, well performing institution represents a logical extension of our market presence in Maryland," said William C. Harris, president of Crestar's Greater Washington Region, which encompasses Northern Virginia, the District of Columbia and Crestar's existing 24 Maryland banking locations. "For Annapolis Bancorp customers, the transaction will bring access to a wider range of financial services with continued local orientation." With $13.0 billion in assets, Crestar Financial Corporation is the holding company for three banks with 302 banking offices in Virginia, Maryland and the District of Columbia. Other subsidiaries provide insurance, discount brokerage, mortgage banking and investment advisory services. -0- 11/17/93 /CONTACT: Barry Koling of Crestar, 804-782-7845; or Gilbert L. Hardesty of Annapolis Bancorp, 410-224-6066/ (CF)
CO: Crestar Corporation; Annapolis Bancorp, Inc. ST: District of Columbia, Maryland IN: FIN SU: TNM
IH-DC -- DC009 -- 5336 11/17/93 09:41 EST
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|Date:||Nov 17, 1993|
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