The parent of Madison Bank of Maryland has agreed to be acquired by BV Financial Inc., the parent company of BayVanguard Bank, for $31 million.
By adding the Harford County bank to its primarily Baltimore branch network, BayVanguard will become an institution with about $400 million in assets and 10 branch locations.
The deal still must be approved by banking regulators and shareholders, but it is expected to close in the first quarter of 2020. BV Financial will pay $15.85 cash for each share of Forest Hill-based MB Bancorp Inc.
“This transaction marks another strategic acquisition for BayVanguard Bank as we continue to expand our market share,” said David M. Flair, co-president and CEO of Baltimore-based BV Financial, in a statement.
“MB Bancorp provides us entry into the highly attractive Harford County market and brings an attractive customer base,” added Tim Prindle, the other co-president and CEO, in a statement.
“This combination will be positive for both banks and ensures that local banking will remain in our community,” MB Bancorp President and CEO Phil Phillips said in a statement. “We believe our customers will benefit from expanded locations and additional products offered by BayVanguard.”