March 4, 2021

On March 3, 2021, Severn Bancorp, Inc., Annapolis, Maryland, announced the signing of a definitive merger agreement with Shore Bancshares, Inc., Easton, Maryland, pursuant to which Severn Bancorp, Inc. will merge with and into Shore Bancshares, Inc. The stock and cash transaction is valued at approximately $146 million. The transaction will create the third largest bank headquartered in Maryland, with total assets of approximately $2.9 billion.

Severn Bancorp, Inc. is the holding company for Severn Savings Bank, FSB, which operates seven branches in Anne Arundel County, Maryland.

Shore Bancshares, Inc. is the holding company for Shore United Bank, which operates 22 full-service branches in Maryland, Delaware and Virginia.

Luse Gorman is legal counsel to Severn Bancorp, Inc. in the transaction. The Luse Gorman team consists of Benjamin Azoff, Gary A. Lax and Ellie Cook.

Luse Gorman has acted as counsel on more than 100 bank M&A transactions during the past five years and more bank M&A transactions than any other law firm in the nation over the past 20 years. To learn more about our mergers and acquisitions practice, please visit our website.