Two Maryland banking companies that announced plans to merge last month need a little more time to work out the specifics of their deal.
Jefferson Bancorp in Lutherville and Carrollton Bancorp in Columbia said in a Securities and Exchange Commission filing Monday that they have extended the deadline for filing regulatory documents with the SEC and bank regulators to no later than 60 days from the date of their April 8 agreement. Initially, they had expected to file the necessary paperwork within 30 days of the deal's announcement.
The companies also said that any decision to call off the deal would be mutual, unless one of the parties violates the terms of the agreement. Under the initial terms of the deal, either party could call off the sale and pay a termination fee.
Jefferson said it would pay $25 million in cash and stock for the $365 million-asset Carrollton in a deal that would nearly quadruple its size. Jefferson, which is largely owned by the private-equity group Hovde Acquisitions, was formed in 2010 when it acquired the failed Bay Bank and has set of goal growing to $1 billion of assets within the next few years. The bank continues to operate under the Bay Bank name.
The companies did not say why they had amended the terms of the deal or if the closing, initially scheduled for next quarter, would be delayed.
Carrollton is expected to be merged into Bay Bank when the deal is completed.