OLBK: Downgrading Stock to Neutral Following Agreement to be Acquired by WesBanco.

Concurrent with its 2Q19 earnings release, Old Line Bancshares announced an agreement to be acquired by Wheeling, WV-based WesBanco, Inc. (WSBC) in an all-stock deal valued at approximately $500 million. OLBK shareholders will receive 0.7844 shares of WSBC for each share of OLBK. Based on WSBC’s closing stock price on July 22, 2019, this values each OLBK share at $29.22. Based on our calculations the transaction price values OLBK at 177% of tangible book value, 12.3x trailing twelve month core EPS, and 11.6x consensus 2020 EPS. The $29.22 price translates to a 12.0% premium to OLBK’s $26.09 closing stock price in July 23, 2019. Prices for bank deals in 2019 have carried an average 166.1% of TBV and a median of 17.1x TTM EPS.

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Media Contact: Joseph Gladue, CFA, PRM

Joseph Gladue has over 30 years industry experience with over 25 years focused on banking research. Mr. Gladue was Director of Research at several firms including Cohen & Company and Merion Capital Group. Previously he was a senior research analyst at B. Riley and worked in finance at Bank of the Internet. Joe has covered small and mid-cap banks across the US and has also follow companies in other financial service industries. Joe also provides his banking expertise in the asset management arena for Bluestone Capital Partners. Joe can be reached at jgladue@aldensecurities.com, 215-572-8700.

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