Hamilton Bancorp in Towson, Md., has agreed to buy Fairmount Bancorp in Baltimore.

The $289 million-asset Hamilton said in a press release Thursday that it will pay $15.4 million, or $30 a share, in cash for the $77 million-asset Fairmount. The deal is expected to close by the end of this year.

"The addition of Fairmount will leverage our footprint and greatly enhance our operating performance," Robert DeAlmeida, Hamilton's president and chief executive, said in the release.

Fairmount had been under pressure by activist investor Joseph Stilwell to sell itself. Stilwell said in a December regulatory filing that he would seek board representation "at the earliest opportunity" as part of his efforts to force a sale.

Keefe, Bruyette & Woods and Luse Gorman advised Hamilton. Olsen Palmer and Jones Walker advised Fairmount.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.