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Bay Bancorp completes Hopkins Bancorp deal

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Bay Bancorp completes Hopkins Bancorp deal

Columbia, Md.-based Bay Bancorp Inc. completed its of Baltimore-basedHopkins Bancorp Inc.

Following deal completion, Bay Bank FSB is the fifth-largest community bankheadquartered in the Baltimore region based upon deposit market share, accordingto a news release. The bank now has approximately $650 million in total assetsand 12 branches in the Baltimore-Washington corridor.

Through the transaction, Bay Bank acquired two branches fromHopkins Federal SavingsBank in the Baltimore market. The release added that the bank plansto rebrand the Pikesville branch under its name immediately. Meanwhile, BayBank will relocate the Hopkins Federal Highlandtown branch to the Bay BankHighlandtown branch on July 11.

Hopkins will continue its operating system until late Julywhen Bay Bank integrates the systems. In addition, Alvin Lapidus, formerchairman of Hopkins Federal, will serve as chairman emeritus of the combinedentity.

Accordingto a separate Form 8-K filed July 11, Bay Bancorp acquired all of Hopkinsoutstanding common shares for cash in an amount equal to 105% of Hopkins'tangible book value at June 30, after giving effect to Hopkins' payment oftransaction-related expenses, $389,808 in cash bonuses that Hopkins paid tocertain employees of Hopkins Bank for pre-merger services, and a $16.0 millioncash dividend that was paid by Hopkins to its stockholders. Based on theforegoing, the amount of the merger consideration was $23.9 million.

Inaddition, upon the close of the transaction, each Hopkins outstanding commonshare was converted into the right to receive cash in an amount of $98.7578,which was determined by dividing the merger consideration by 241,552, thenumber of issued and outstanding shares of Hopkins common stock as of dealclosing.