VILLANOVA, Pa. - MLF Bancorp, parent of Main Line Federal Savings Bank, has agreed to buy Suburban Federal Savings Bank, Collingdale, Pa., for $5.7 million.

Under the agreement, shareholders of $66 million-asset Suburban will receive $10.25 in cash for each share of their stock, equal to 158% of Suburban's June 30 book value and 25 times trailing fourth-quarter earnings.

Suburban has also granted $1.6 billion-asset MLF an option to buy as much as 19.9% of its stock under certain circumstances at a price of $6.50 per share.

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