Revere Bank entered into a definitive agreement to acquire BlueRidge Bank for $20 million on October 19, 2015. Under the terms of the transaction, the exchange ratio will be fixed at 0.6245 of Revere's shares for each share of BlueRidge including the value of outstanding options and warrants to acquire BlueRidge Common Stock. Options and warrants to acquire BlueRidge Common Stock would be converted into options and warrants to acquire shares of Revere common stock. The number of options and warrants and the exercise price will be adjusted by the exchange ratio. Pursuant to the transaction, BlueRidge will be merged into Revere. At June 30, 2015, BlueRidge had total assets of $205 million, total equity of $17 million. In connection with the transaction J. Brian Gaeng, President and Chief Executive Officer of BlueRidge will join the executive management team of Revere and its Board of Directors. An additional two existing members of the BlueRidge Board of Directors will be invited to join Revere's Board of Directors. A new advisory Board will be created for the Frederick Region and all current members of the BlueRidge Board will be invited to join this Board. In addition, Revere will maintain BlueRidge's Baltimore Region Advisory Board. BlueRidge's Frederick and Baltimore branches to Revere's five current locations.

The transaction has been unanimously approved by both Revere's and BlueRidge's Boards of Directors. The transaction is pending regulatory approvals and the approval of the shareholders of Revere and BlueRidge. The transaction is expected to close in the first quarter of 2016. Revere expects that the transaction will be accretive to both Revere's tangible book value per share and earnings per share within 12 months following the closing of the merger. Sandler O'Neill + Partners, L.P. acted as financial advisor and Windels Marx Lane & Mittendorf, LLP acted as legal advisor for Revere Bank. FinPro Capital Advisors, Inc. acted as financial advisor and Luse Lehman Gorman Pomerenk & Schick acted as legal advisor for BlueRidge Bank.

Revere Bank completed the acquisition of BlueRidge Bank on October 21, 2015.