Jefferson Bancorp in Lutherville, Md., has received regulatory approval to buy Carrollton Bancorp (CRRB) in Columbia, Md.
The Federal Reserve Board and Office of the Comptroller of the Currency both approved the merger, Carrollton said Tuesday. Jefferson Bancorp’s owner, Hovde Acquisitions, a Washington private equity company, will buy Carrollton and merge Jefferson into it. Carrollton’s bank will merge into Bay Bank, Jefferson’s banking unit.
The Fed approved the deal on March 14, with a stipulation that the merger must be completed within three months. The OCC approved it on March 22, the release said.
Jefferson agreed to acquire the $365 million-asset Carrolton for $25 million in stock and cash in April 2012. The companies have moved the deadline for completing the deal several times as they awaited regulatory approval
Hovde is the advisor for Financial Services Partners Fund I, which formed Jefferson in 2010 to buy the assets of the failed Bay National Bank. Jefferson has $133 million in assets.