Baltimore Mutuals Bay-Vanguard and Vigilant to Merge

BV Financial, the holding company for Bay-Vanguard Federal Savings Bank, has agreed to acquire Vigilant Federal Savings Bank in a combination of two small Baltimore mutual thrifts.

No money will be exchanged, since the deal is between two mutuals. BV Financial will issue new shares to its own mutual holding company, "in an amount equal to the fair value of Vigilant Federal as determined by an independent appraisal," the companies said.

The merger has been approved by the boards of both companies. It's expected to close in the second quarter, pending approval from regulators and Vigilant's depositors.

The deal will boost BV Financial's assets to about $200 million from about $149 million. Vigilant operates a single branch office in the Essex community east of Baltimore. Vigilant was established in 1927 by the Essex volunteer fire department.

Kilpatrick Townsend & Stockton gave legal counsel to BV Financial, and Spidi & Fisch was counsel to Vigilant.

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