Towson-based Hamiton Bank is set to be acquired by Orrstown Financial Services, a bank holding company in Shippensburg, Pa., for $58.5 million in stock and cash, the companies announced.
Hamilton has seven branches in the Baltimore metro area in Cockeysville, Ellicott City, Pasadena, Rosedale, Towson and Baltimore City.
Founded in 1915, the community bank has $525 million in assets and 75 employees. It offers mortgages, consumer loans and commercial products.
Orrstown is the parent company of Orrstown Bank, another century-old bank, with $1.9 billion in assets and 31 banking offices and three loan production centers serving Pennsylvania and Maryland.
The combined bank will have $2.5 billion in assets with a branch network spanning south central Pennsylvania and Maryland.
“This merger affords us an immediate presence in one of the most populous regions in the country, and in a market that is strategically situated for Orrstown’s future growth,” said Thomas R. Quinn Jr., Orrstown’s president and CEO.
Hamilton Bank shareholders will receive 0.54 shares of Orrstown common stock and $4.10 per share in cash for each share of Hamilton common stock they own.