Baltimore-based BV Financial Inc. (MHC) agreed to acquire Forest Hill, Md.-based MB Bancorp Inc. and its unit, Madison Bank of Maryland, in an all-cash deal valued at around $31.0 million.
MB Bancorp shareholders will receive $15.85 for each common stock they own under the terms of the deal. The transaction is expected to close in the first quarter of 2020 and is projected to be accretive to BV Financial's 2020 EPS, according to a news release.
BV Financial had total assets of $299.5 million and MB Bancorp had total assets of $147.1 million, both as of June 30, according to S&P Global Market Intelligence data.
S&P Global Market Intelligence calculates the deal is 92.5% of common equity on an aggregate basis and the deal value is 21.13% of assets and 31.06% of deposits.
S&P Global Market Intelligence valuations for bank and thrift targets in the Mid-Atlantic region between Sept. 5, 2018, and Sept. 5, 2019, averaged 142.85% of book and 151.41% of tangible book and had a median of 17.15x last-12-months earnings, on an aggregate basis.
BV Financial will enter Harford County, Md., with two branches, which will be ranked No. 14 with a 1.46% share of approximately $3.94 billion in total market deposits. Due to the deal, it will expand in Baltimore County, Md., by one branch to be ranked No. 17 with a 0.85% share of approximately $18.39 billion in total market deposits.
There will be no change in the managements or boards of either BayVanguard Bank (MHC) or BV Financial as a part of the transaction.
Luse Gorman PC was legal adviser to BV Financial. Banks Street Partners was financial adviser to MB Bancorp, while Kilpatrick Townsend & Stockton LLP was legal counsel.
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