Jefferson Bancorp in Lutherville, Md., has finally completed its purchase of Carrollton Bancorp (CRRB) in Columbia, Md.
The $133 million-asset company said Monday that it had acquired 10 branches from Carrollton that will operate under the Bay Bank name. The company has $480 million in assets and 22 branches around Baltimore.
Under the terms of the deal, which was announced in April 2012, the company will operate as Carrollton Bancorp. The companies had moved the deadline for completing the deal several times as they waited for regulatory approval.
"This is a wonderful transaction for both institutions," Kevin Byrnes, Bay Bank's chairman, said in a press release. "It fits into our strategic priority of being a first class community bank as the combined institution will have the sufficient size and lending capacity to provide a local alternative to the larger regional and national banks."
Jefferson's owner, Hovde Acquisitions, a Washington private equity company, agreed to pay roughly $25 million in stock and cash for Carrollton, which had roughly $365 million in assets. Hovde is the advisor for Financial Services Partners Fund I, which bought roughly 84% of Carrollton's outstanding shares. Hovde formed the fund in 2010 to buy the assets of the failed Bay National Bank.
Jefferson suggested Monday that it anticipates making more deals. "We will continue to look for other attractive opportunities in the market that will provide additional economies of scale to operate in the current banking environment," Byrnes said.